September 23, 2014

Do You Know How to Help New Yorkers Double Their Earning Power?

What if we told you that we know how to help New Yorkers double their earning power? The key to achieving this goal is clear – help more young people graduate from college.

In New York City, a college degree holder earns twice the median income of someone with a high school degree:

Above: Median incomes in New York City by educational attainment for adults 25 years and older. Source: U.S. Census Bureau, American Community Survey 1-Year Estimates (2012), Summary Table B20004; retrieved from American FactFinder; http://factfinder2.census.gov/.

There’s no doubt that sending children to college requires a student’s hard work, plus a lot of effort and planning. It also requires savings.

That’s why we’ve been celebrating College Savings Month, and posting on our social media about the importance of helping families save. Here’s a sample of some of the other facts we’ve shared that proves this point:

• Over 400,000 NYC households were unbanked in 2010, according to a report by NYC’s Office of Financial Empowerment.
• Research shows that a dedicated college savings account can foster a child’s perception of him or herself as college-bound, making him or her more likely to apply for college and more likely to graduate.
• U.S. Census data also show that only about half (53.6%) of young adults (ages 25 to 34) hold an Associate’s Degree or higher.

All this data clearly demonstrate the large impact that savings can have on a child’s future.  It’s why we feel so strongly that government policies should support and enable families’ efforts to save.  Our transition plan details our recommendations for the City, including:

• Broaden savings initiatives to include projects specifically targeted to help children and youth access savings platforms.
• Help children and families learn the fundamentals of financial literacy.
• Protect and expand upon Financial Empowerment Centers, which help households get banked, manage debt and achieve short and long-term financial goals.
• Ensure that families claim tax credits for which they are eligible, such as the Earned Income Tax Credit and Child Care Tax Credit, and provide opportunities to help families save some or all of their refunds.

We’re excited about these ideas, and the great work being done to promote New Yorkers’ financial security.

Stay tuned for more on our efforts to help families save for college and more!

Tags
Child Care Tax Credit, college savings, Earned Income Tax Credit (EITC), Financial Literacy, Economic Security

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