Illinois Asset Building Group - Building Financially Strong Families and Communities

Maria Teresa

Maria Teresa is focusing on the future, both for family and for herself. After years of working in a factory, Maria is taking financial education and professional development classes to plan for a career change. In order to achieve her future goals she has gone back to school to become a certified nursing assistant, after which she will continue on to become a licensed practical nurse. As a working mother this is no small task. “I want to prove to myself that I can do it”, said Maria.

She and her husband have a 9 year-old son named Denis. Denis is a bright little boy who loves to read. Maria feels that it is important for Denis to go to college in order to reach his true potential and she is leading by example. “Right now I am working at a factory, but I want to be a nurse. I told Denis you have to go to college”, said Maria.

Maria is worried about the responsibility of financing Denis’ education. She knows sending Denis to college will be expensive. She has witnessed the high cost of college through her own experience in school and is thinking about opening a savings account for him. Maria and her husband want to teach Denis the importance of saving for the future. At home Denis has a toy ATM machine which also serves as a bank. At school Denis has had financial education lessons. “They are teaching him how to write checks”, said Maria. She feels these lessons are making Denis think more about savings.

Saving, however, is not always easy. “Sometimes it is hard for Latino people to save”, said Maria. When asked how she thinks universal children’s savings account would have changed her life and the life of her child Maria replies, “My life would be different, it would be better. It would help a lot for Denis, I wouldn’t have to worry so much about how we are going to pay for him to go to college”.

Maria is working hard to create a better future for her family. She knows that her son has a long road ahead of him and wants him to know he has support. Children’s savings accounts have the potential to offer this support for Denis and for all Illinois children.

Siretha and Deanna
Siretha and Deanna are sisters who have been through a lot together. Siretha is the proud mother of 11 children ranging in age from 8 – 28. Two years ago Siretha experienced a major tragedy when her 11 year old daughter was killed by a stray bullet while attending her own birthday party at her Aunt Deanna’s home. Later that same year another tragedy hit when Siretha’s husband passed away.

Now a single mother raising 11 children, Siretha is actively involved in her neighborhood. She and Deanna, who is the mother of 4 children, are concerned abut the future of the children in their community as well as their own. Both sisters want to see that all children have the opportunity to grow to become successful members of society.

With the cost of college rising each year the possibility of affording a post-secondary education becomes further and further out of reach.  “I think a savings account would help all of our children” says Deanna, “my older child missed out on college because of finances, I don’t want the younger one to miss out too”. Deanna feels that Children’s Savings Accounts would also help by providing new experiences. “I think a savings account would benefit kids by helping them to get out of the neighborhood and go to a four year college. A lot of kids go to two year colleges because of money and never leave the neighborhood. A four year school would show them that there is something better than this”.

Siretha feels her children would have benefited from a CSA in a different way. Three of her daughters are out on their own and working. One has become a nail technician and two are managers of local stores. “I think if they had a savings account they would have started their own businesses” says Siretha.

Whether through funding a college education, staring a small business or buying a home, Children’s Savings Accounts create new opportunities and brighter, more financially secure futures for all. Siretha and Deanna will continue to work towards creating a better tomorrow for their children and their neighborhood by supporting Children’s Savings Accounts.

Johnnie
Johnnie is the father of four children ranging in age from 6 – 23. He is also a staff member at Teamwork Englewood working with the summer jobs program which helps hundreds of local youth find summer employment. Both Johnnie and Teamwork Englewood stress the importance of financial literacy to all summer jobs participants. To teach youth the basics of money management every participant is set up with a bank account in which paychecks are directly deposited.

Recently Johnnie’s daughter began working with the program and has begun to accumulate funds in her account. “She has received two paychecks and hasn’t taken any money out”, says Johnnie.While his daughter may be on the right track to building savings Johnnie says that this is not the case with all children. “If youth are saving it is usually for an immediate material desire. They are not saving for assets, they are saving for gadgets”. Johnnie attributes much of this problem to societal trends, “we are living in a consumer oriented society and are constantly at war with marketing”.

IABG promotes Children’s Savings Accounts that are started at birth, restricted from use until a child turns 18 and designated for purposes such as home ownership, entrepreneurship, and post-secondary education. “I think a savings account can be a useful tool for helping children understand what money and finances should really be for”, said Johnnie. When asked how CSAs could help his family Johnnie stated, “I would hope to use it to re-frame what is important and to open a discussion on tangible and real financial goals and objectives. I think a savings account is the first seed of a plan for their life”.

In addition to helping his own family, Johnnie feels that CSAs can play a vital role in the lives of children from low-income households. “How do you start a discussion on finances and saving for the future when you don’t have any concrete assets? I think CSAs could have a huge impact on families like this”.

Whether they come from low, middle or upper-income all children will benefit from the educational and financial opportunities offered through Children’s Savings Accounts.

Mary
Mary and her husband know the importance of financial planning and education. They have made it a priority to teach their 9 year old son Charles about money and how to save. “He always knows exactly how much money he has”, says Mary.  Currently in fourth grade, Charles is an ambitious honor role student. His dream is to become a doctor. Mary knows Charles is very intelligent and has the ability to achieve his dream. She also knows that this will come with a price tag; and the family needs to start planning for Charles’ future. “I think a children’s savings account would really help him”, said Mary.

As the owner of a small childcare business, Mary has taken financial education classes, which taught her the benefits of money management. She feels that financial education is not only beneficial to adults but can also benefit children. Mary is looking to start a group that would teach children in her son’s age-range about money and the importance of saving.

IABG aims to promote children’s savings accounts that are created at birth, seeded with an initial deposit and paired with financial education. “This is exactly what we need”, said Mary, “I try to teach all the children I work with that they can be whatever they want to be”. Mary believes that CSAs will help to break down barriers and ensure that Illinois children build a brighter future.

Romona
Romona is a single mother with two children. With one son already in college she is focusing on her second child, Michael, and what he will be doing after high school. Romona says Michael, a junior in high school, talks about becoming an automotive engineer. “He entered high school with honors and may graduate early” she says, “He wants to go to Texas, Florida or California”. While her son has spent time researching where he would like to attend college his savings habits have not always been as ambitious. “He has an addiction to Nike” says Romona, “When you get to college you realize you have to buy books and all these extras, but when you are young it is just spend, spend, spend”.

Recently Michael opened a savings account at a local bank. After this, Romona saw a positive change in his savings habits which she attributes to the account. “He’s focused now”, she says. When asked if she thinks Michael’s situation would be different if he had a savings account opened at birth, paired with financial education and restricted until he turns 18, Romona enthusiastically responds “Yes I think it would have helped a lot”.

If Michael was able to focus on saving and reduce his spending a few months after opening an account, just think of what he would have been able to accomplish in 18 years.