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2005 Press Release

Contact:

Neil Cotiaux, Federal Home Loan Bank of Pittsburgh: 412-288-2851
Emily Keebler, Neighborhood Housing Services, Inc: 412-281-9986

FIRST YEAR OF 'MY MONEY, MY LIFE' A MAJOR SUCCESS FOR
AT-RISK YOUTH
STUDENTS SHOW BIG GAINS IN FINANCIAL LITERACY, SAVINGS, CONFIDENCE; PLANS UNDER WAY FOR EXPANSION OF PROGRAM TO OTHER CITIES

PITTSBURGH, PA, December 28, 2005 — Nearly 200 at-risk youth in greater Pittsburgh who participated in the first year of an innovative financial literacy program showed solid gains in their knowledge of basic money matters and personal savings rates as well as greater confidence in making decisions dealing with money, year-end program totals show.

The Federal Home Loan Bank of Pittsburgh (FHLBank) launched My Money, My Life in November 2004 as an initial five-year program designed to educate at-risk youth 16 to 19 years of age about the importance of budgeting, savings and financial planning for the future. Weaning youth away from predatory lenders and early debt is a key component of the curriculum.

The program consists of a series of no-cost, 15-hour after-school classes that lead to the opening of fee-free savings accounts with a complimentary $100 deposit at graduation. The FHLBank — a wholesale lender for community advancement — successfully encouraged nine of its Pittsburgh-area member institutions, Allegheny County, the Heinz Endowments and program administrator Neighborhood Housing Services, Inc. (NHS) to participate in the initiative.

Financial habits being changed

A total of 188 young people graduated from My Money, My Life during 2005, putting the program on track to reach its five-year goal of reaching at least 1,000 at-risk youth by 2009. In self-evaluations conducted before and after their classes, the graduates displayed:

• A 119 percent average increase in understanding financial costs associated with the use of payday lenders.
• A 103 percent average increase in understanding the financial costs of buying on credit.
• An 87 percent average increase in establishing written goals for managing their money.
• A 76 percent average rise in the use of a spending plan or budget.
• A 25 percent average gain in discussing money management with family members.
• A 23 percent average gain in setting aside money for future needs or wants.
• And an 18 percent average rise in confidence about making decisions dealing with money.

Moreover, 45 percent of the graduates who have retained their My Money, My Life savings account have added deposits to it or seen interest on the account grow — a strong signal of their ability to save for the future.

The nearly 200 graduates took part in classes held across greater Pittsburgh during 2005. Each class was led by instructors from NHS and one or more financial institution members of the FHLBank, a government-sponsored enterprise that uses private capital for the public good. Participating members included: Dwelling House Savings and Loan Association, ESB Bank, Iron & Glass Bank, Laurel Savings Bank, National City Bank, Northwest Savings Bank, PNC Bank, Sewickley Savings Bank and Sky Bank.

All participants in My Money, My Life complete an evaluation to measure their financial knowledge and degree of financial self-direction. At graduation, any participant with an attendance record of 80 percent or better is eligible for a fee-free savings account and initial $100 deposit provided by a member bank. In addition, parents, guardians or caregivers attending the graduation ceremony receive a certificate to enroll in NHS' financial literacy/homebuyers clubs or receive credit restoration counseling at no cost.

In addition, graduates of My Money, My Life are able to apply for academic, vocational and skills training at Job Corps, a U.S. Department of Labor job training program. Job Corps offers more than 100 trades and 40 college programs at no cost to the student. It provides disadvantaged young people with the integrated academic, vocational and social skills training they need to gain independence and get quality, long-term jobs or further their education.

Program to be expanded in 2006

"Our first-year results are tremendous," declared Eric Dickerson, deputy director of Community Investment at the FHLBank and organizer of My Money, My Life. "Our program partners say the results over the past twelve months exceeded their expectations."

Buoyed by the success of the program, the FHLBank will issue a call for proposals to other localities and nonprofits during the first quarter of 2006 with an eye toward expanding My Money, My Life to other parts of Pennsylvania and to Delaware and West Virginia. And, along with its partners, the Bank will also introduce an advanced curriculum for prior graduates of the financial literacy program throughout greater Pittsburgh. Advanced classes will entitle graduates to an additional savings account deposit of $200.

"Neighborhood Housing Services is extremely pleased to be associated with this very successful program," said Emily Keebler, NHS' My Money, My Life administrator. "We are starting to change the financial perceptions and habits of at-risk youth and are helping them to prepare for a more stable future."

With $71 billion in assets, the FHLBank of Pittsburgh uses private capital to provide a steady stream of low-cost funding for affordable housing, economic development and community banking needs to nearly 340 member financial institutions.