DCF, Liberty Bank Team Up To Teach Teens In Foster Care About Financial Literacy

by Donald Eng

MIDDLETOWN, CT — Teens who otherwise could end up easy targets for scammers and crushing debt instead got an early start on the road to financial independence Tuesday, thanks to a collaboration between a Connecticut bank and the Department of Children and Families.

On Tuesday, 20 teens in the department’s care participated in a half-day money management youth banking program. Hosted by Liberty Bank at the company’s Innovation Center in downtown Middletown, the session covered banking, budgeting, fraud prevention, financial decision-making, and identity protection. 

“We really tried to keep in mind the most important things people need to understand about banking and how to bank responsibly,” said Liz Hazelwood, a program supervisor with DCF. 

Liberty Bank college interns talk about what they wish they had known about financial literacy when they were teens. Credit: Contributed / Dept. of Children and Families

After the youths complete the program, they will head over to the branch across the street and open their first bank account.

“They won’t have credit cards or a checking account because they’re underage, but they’ll get started with direct deposit and online banking.”

One of the participants, 16-year-old Ari, said he was preparing to start a job next month. He said he struggled with one specific aspect of financial literacy.

“Definitely budgeting,” he said. “I kind of suck at not spending money when I see something I like. I’m kind of hoping to save more and spend less on things I don’t really need.”

Ari, a Norwich native,  is currently in a group home but is transitioning to foster care. He said he believes his impulsive spending stems from a childhood filled with uncertainty.

“We moved around a lot. Foster care,” he said. “I was taking care of my siblings and couldn’t do the things that other kids did.”

For that very reason, having a debit card is critical, said Pam Days-Luketich, vice president of community development at Liberty Bank.

“They want to catch up to the things other kids are doing,” she said. “A lot of things today are cashless, so without a debit card they can’t go to a concert or go somewhere with their friends.”

Hazelwood said the youth’s age put them squarely at the time in their lives when they were at risk of becoming disengaged or disconnected – defined as youths who are not in school or employed. Knowledge of basic banking can help them with even basic skills like depositing a paycheck and arranging for credit card payment.

“When we were developing this program our biggest goal was to provide some sort of normalcy for youth,” she said. “The way to do that is to capture them as young as possible with things like going to a bank.”

These basic skills can put the teens in position to take advantage of opportunities that they could otherwise miss.

“Keep in mind, they may not have the traditional parent structure,” she said. “Those who don’t have foster care experience might have a parent or guardian who will cosign a bank account. Foster youth don’t have stable guardians.”

The program also can help the participants avoid financial pitfalls like the transaction fees at check cashing outlets or cash apps, Hazelwood said.

“When they start getting summer employment, or small jobs, the money can go directly into their account,” she said. “It cuts out all of these barriers. And then when they turn 18, they can close this account and open a standard checking account.”

Days-Luketich agreed. She added that Liberty Bank college interns, just a few years older than the teens in the program, delivered a powerful message about the things they wish they had known.

“They talked to them about things like having a summer job, and how they wished they hadn’t spent all their money without thinking,” she said. “They wished they had saved more money and had more of a cushion and a backup when they got to college. Just, to really be thoughtful about your spending.”