WASHINGTON—Five federal financial regulatory agencies have issued guidance to encourage federally insured depository institutions to offer youth savings programs to expand the financial capability of young people.
The guidance—from the Federal Reserve, NCUA, FDIC, OCC, and the Financial Crimes Enforcement Network—also provides answers to frequently asked questions related to the establishment of these programs.
“Many financial institutions already collaborate with schools to establish programs that allow students in elementary, middle and high school to open and manage savings accounts and to learn good savings habits early,” a joint release stated. “Research indicates that school-based youth savings programs—when combined with financial education—can be effective in helping students to improve their long-term financial and education prospects.”
The guidance does not create any new regulatory policy or establish new industry expectations, and is consistent with the “Starting Early for Financial Success” focus of the Financial Literacy and Education Commission, the agencies stated.