opinion-editorial
Delivering the fi nancial education and tools for equity
BY SABRINA LAMB
Students across the country are returning
to school, some in-person for
the fi rst time since the pandemic began.
While many underserved Black
and Latinx students struggled with
systematic educational inequities before
the pandemic, Covid-19 magnifi
ed many of these inequalities and
brought them into greater focus. A recent
McKinsey study showed that as
a result of the pandemic, students of
color were about three to fi ve months
behind in learning, compared to the
one to three months by white students.
Now more than ever, education
is needed for youth on technology and
business education.
World of Money, a non-profi t organization
founded in 2015, seeks to
empower children and youth with resources
to improve their fi nancial education
and achieve greater economic
security and mobility. We connect
youth and their parents with fi nancial
experts to equip them to learn,
earn, save, invest and donate responsibly.
Since its inception, more than
5,000 youth between ages 7-18, and
their families have received World of
Money’s annual 120 classroom hours
of fi nancial education, youth business
“It is essential that Congress addresses fi nancial policy through the lens of those most impacted by the pandemic,” says Sabrina Lamb.
Photo courtesy Getty Images
pitch competitions and parent forums.
But we can’t do this alone. To ensure
all Americans have access to fi -
nancial education, access to fi nancial
services is critical. We can teach
about responsible use of the fi nancial
system in a classroom and online, but
if policymakers limit their access in
the real world then it is all for naught.
It is essential that Congress addresses
fi nancial policy through the
lens of those most impacted by the
pandemic. While efforts like stimulus
payments have helped to blunt the
damage, lawmakers are simultaneously
reigniting conversations on policies
that would limit access to fi nancial
products and services.
Specifi cally, proposals imposing
onerous routing mandates on credit
cards would create serious damage
to the long-term fi nancial success of
Black and Latinx families. On the surface,
this might seem contradictory.
However, previous efforts to impose
limits on debit cards in 2010 resulted
in a signifi cant increase in unbanked
Americans and harm to low-income
communities. These families were
particularly impacted by the consequences
of the debit card cap, especially
the loss of debit rewards, more
stringent balance requirements, and
higher fees — with some exiting the
traditional banking system as a result.
So, while lawmakers think that
they would be helping consumers, the
reality is that they would actually be
cutting them off from the very fi nancial
tools and services that we teach
every day.
Additionally, without access to
mainstream fi nancial services, families
will lose access to tools like fraud
protection, while having less access
to capital. A recent Federal Reserve
report found that in the wake of the
previous debit processing limits,
more than 20 million Black and Latino
Americans were forced to seek
alternative fi nancial services. Without
access to reasonable mortgages,
families are unable to access broader
fi nancial growth and basic housing
security. Without business loans, a
small business can’t expand or invest
in new equipment. Access to equity
and credit through traditional
banking channels is associated with
reducing income inequality, improving
mental health, and empowering
women.
Even before the pandemic, it was
unbearably expensive to live without
access to traditional banking and
fi nancial products and services. In
2021, the Financial Health Network
released a market study that found
the unbanked and underbanked populations
spent $255 billion in fees and
interest over the course of 2020. Beyond
the monetary costs, there are social
impacts that are more diffi cult to
measure but have shown to have signifi
cant impact on individuals and
youth. The Consumer Financial Protection
Bureau conducted a review of
youth fi nancial education studies in
2019 and found, among the effects of
youth education programs, “fi nancial
education improves credit scores and
decreases delinquency rates.”
Now more than ever, the pandemic
demonstrates that access to internet,
electronic payments, credit cards,
and basic fi nancial services are not
just a “nice to have” lesson in a classroom
but an essential part of bridging
the fi nancial equity gap. Empowering
youth with the knowledge and confi -
dence to make conscious fi nancial decisions
from an earlier age promotes
access to affordable fi nancial services
and a reduction in underbanked
Americans, expanding opportunities
economically and beyond. Combining
that fi nancial education with the
real-life access to these fi nancial tools
is a pathway for long-term success for
American youth.
Sabrina Lamb, is the founder and
CEO of World of Money, a New Yorkbased
non-profi t organization.
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