Rasheed Hassan said he struggles to save money at age 16 because he does not have a bank account.

 

“When I get some money I put it up in my piggy bank I have at home. I never really thought about opening a bank account until now,” Hassan, a junior at Chicago Talent Development Charter High School, 4319 W. Washington St., he said. “My parents do not talk about money with me so I thought it was not a big deal.”

 

 

Youth like Hassan are exactly why President Barack Obama created the President’s Advisory Council on Financial Capability, said John Rogers, chairman of the PACFC.

 

“The president is concerned that too many youth especially those from low-income households are not being taught enough about financial responsibility and that needs to change if we expect our youth today to be responsible leaders for tomorrow,” said Rogers, who is founder and chief executive officer of Ariel Investments Inc., a black-owned money management firm in Chicago. “A lot of banks offer free classes to youth on how to manage a checking account and even how to invest but few offer classes on how to save by using a simple savings account.”

 

One of the council’s key objectives is to advise the president on ways to improve financial education efforts directed at youth, added Rogers. And according to the PACFC, 22 percent of youth do not have a bank account; 30 percent have no savings; and two out of five student loan borrowers have been in delinquency or default.

 

PACFC recently sponsored a financial workshop for youth at Michele Clark Academic Preparatory Magnet High School on Chicago's West Side where youth quizzed each other about the basics of saving and also participated in a panel discussion with a group of financial advisers including Stephanie Neely, treasurer for the city of Chicago and the highest elected black official at City Hall.

 

Neely, whose office offers free, youth financial programs, such as Kids Korner, said her nine year-old son received a piggy bank from one of her friend’s at age four and ever since then he has become a determined saver.

 

“My son received the Money Savvy Pig when he was just four years old. More than just another toy - it was an interactive tool that my young child understood and continues to use even today, five years later,” recalled Neely. “My son was able to visualize his goals and has applied those financial lessons learned at an early age to real-life situations. (And) it is my belief that our children must be empowered with key financial skills and it is never too early for them to learn.”

 

 

She added that there are four components to having a piggy bank. “There is savings, spending, donation, and investing,” Neely said.

 

 

Afterwards, Latrell Jones, a 17- year-old junior at CTDC high school, was ready to open a bank account.

 

“Now I see the importance of having a bank account and saving a little something and not spending every dollar I get,” he said. “The most I have ever saved was $80 and I probably could have saved more if I had known more about how to save.”

 

 

For Greg Kelly III, he has not been good at saving money.

 

 

“The most I have saved was $20. I know that’s bad but when you don’t have a job you cannot save a lot,” Kelly, 17, said.

 

The economy is a big reason why a lot of families are not saving as much as they would like, said panelist Andrea Ingram, vice president of Education and Guest Services for Chicago's Museum of Science and Industry.

 

 

“But if you have an income, no matter how small it is, you should try to save something and build from there,” she added.