Financial Literacy Initiative
The foundation for long-term economic development and prosperity is an educated community. Native American Community Development Corporation’s (NACDC) focus is on assisting Native communities in establishing the mechanisms to promote financial education with both adult and youth-oriented programs. The latter could include the establishment of a school-based program that utilizes a teaching curriculum that is tied into bank-based savings program that engages children in the process of managing their finances at a young age.
Financial Literacy/Mini Bank Overview
Blackfeet Mini Bank Association
In 1996 the Blackfeet Mini Bank was established at the Browning Middle School on the Blackfeet Reservation in Montana. Introduction of the banking experience in the schools was to encourage children to save and promote sound money management. Students open a savings account with their Social Security card and $3.00. The account is a savings account at Native American Bank. The account is a free savings account and all service charges are waived until they graduate from high school. They have sole ownership of the account and are responsible for its maintenance. The Mini Bank Coordinator acts as a direct liaison between the students, schools and the Native American Bank by accepting and recording deposit transactions and ensuring proper transfer of the funds to the bank.
Each school has its own “mini bank” and a student board. The Mini Bank student board is responsible for the operations of the mini bank in their school. After a student is selected to serve on the board, they participate in an orientation and serve on the board until they graduate from high school. Every week the students rotate working days and positions. The “mini-bank” program’s uniqueness and effectiveness is that students develop their own policies and procedures under which their bank operates.
In close partnership with the Native American Bank and School District #9, the Blackfeet Development Fund facilitated the development of a financial literacy curriculum for the Browning Public Schools by accessing innovative strategies from around the country. School staff adapted these materials for their own use, making them relevant to life in an Indian community.
NACDC Mini Bank/Financial Literacy Program has the goal to:
- Provide full time management of the program to ensure continued success;
- Expand the mini-bank program reservation-wide to the outlying communities of East Glacier, Babb, and Heart Butte;
- Expand the mini bank program nation-wide to other reservations;
- Provide on-site banking hours for students to open new accounts and make deposits;
- Provide students with on financial literacy curriculum and instruction;
- Implement an Individual Development Accounts program;
- Provide incentives for students to save $100 and above throughout their K-12 grades;
- Provide incentives for students to focus their savings on higher education, small business development or housing;
- Enhance the already successful youth mini-bank program by putting in place a better tracking system that follows students as they move through and out of program, and create a program that helps convert student savings into equity accounts for current and future small business activities or for continuing education.
Along with the savings account program, students receive financial literacy through the Mini Bank savings incentive programs and curriculum. The Blackfeet Mini Bank Association has seen students graduate from high school educated about the financial concerns in today’s world. They have learned to make sound decisions regarding investing in higher education opportunities, business/entrepreneurial opportunities, purchasing big tickets items such as a home and having the capability of sound money management.
The Blackfeet Mini Bank Association has expanded to six different schools on the Blackfeet Reservation. These schools include the Napi Elementary, Browning Middle School, Browning High School, Nizi Puh Wah Sin Language School, the De La Salle Catholic School and the Blackfeet Boarding School. The Blackfeet Mini Bank program will expand to all the Schools on the Blackfeet Reservation including East Glacier, Babb and Heart Butte.
Since its inception, the Blackfeet “Mini-Bank” has garnered interest from many schools and institutions around the State of Montana and the nation. Thanks to the First Interstate Foundation, the NACDC Mini Bank model has been expanded to Wyoming and the following Montana Reservations: Crow, Northern Cheyenne, and Flathead Reservations.
In Fall 2008, NACDC will expand the Mini Bank Program to the Ute MT Ute Reservation in Soutern Colorado, Fort Peck Reservation in Eastern Montana, Fort Belknap Reservation in North Central Montana and the Rocky Boy Reservation in Central Montana.
Fort Hall Mini-Bank Program
In the Fall of 2006, the Shoshone Bannock Tribes of the Fort Hall Indian Reservation, located in southeast Idaho, was selected as the second community project for the Native American Community Development Corporation Mini Bank program. Among the goals of the initiative is to help bridge the gap between Native communities and their development needs and much needed conventional and specialized sources of capital and to help these same communities create or expand on their capacity to provide development support for small businesses through educational initiatives.
In response to strategic planning sessions held on the Fort Hall Indian Reservation with local tribal organizations and representatives on December 1, 2005 and March 7 & 8, 2006, and a presentation to the Education Task Force’s Johnson O’Malley Committee on April 20th, the Native American Community Development Corporation will coordinate efforts for the implementation of a Mini-Bank Financial Literacy Program for the Fort Hall Indian Reservation. The Mini-Bank Program will be based on the current successful Blackfeet Reservation Development Funds Mini-Bank Program in Browning, Montana.
The first ever-Mini Bank Program was launched at the Fort Hall Elementary on November 2, 2006. Fundraisers and on-site exhibit booths at extracurricular school functions provided for the initial account start-up fee of three dollars ($3.00). As a result, 100%, 58 accounts, participation of student body, grades three through five (3-5) are participating at Fort Hall Elementary. The ability to grasp the concept of savings is different for each child, however the grade with the most saved in the entire program is in first grade. Mini Bank Boards are established for the fourth and fifth grades that mentor for continuity in the transition of new grades upcoming grades.
The second program was introduced at the Shoshone-Bannock Jr./Sr. High School. In cooperation with the Tribal Credit, a fundraiser for the student body raised the initial $3.00 fee. The proceeds from the concession stand at the Shoshone-Bannock High School basketball game went to open these new accounts. Our financial goal was met and 118 new accounts were opened. Two mini bank boards were established, one for the Jr. High School and one for the High School.
Today the Fort Hall Mini Bank Program is in place at two schools at the Shoshone-Bannock Tribes. These schools include the Fort Hall Elementary, and Shoshone-Bannock High School. Each school has its own “Mini-Bank” and student board. Currently there are 16 total students serving on the boards. Their responsibility is for the operations of the mini bank in their school. After a student is selected to serve on the board, they participate in an orientation and serve until they graduate from high school. Each week the students rotate working days and positions. Students are exposed to experiences and opportunities that lead to pursuits in accounting and financial services careers.
2008 NACDC Mini Bank Expansion and Beyond
The Shoshone-Bannock Mini Bank program will be expanding to the Lillian Valley School on October 1. The school is a private school with 30 students. Tyhee Elementary will follow in November, which has 550 students.
The NACDC Mini Bank program will be expanded to the Montezuma-Cortez School District in October 2008. The schools service the Ute Mountain Ute students in Southern Colorado. The same model from Blackfeet and Shoshone-Bannock will used to implement the program.
The NACDC Mini Bank program will be expanded to the Opportunity Learning Center on Fort Peck Reservation in November. The Opportunity Learning Center is a Alternative School for students 4th grade-12th grade on the Fort Peck Reservation. It has an average of 20 students through out the school year. The program will be expanded to the Northside Elementary in January 2009. It has a student population of 200.
Partners and Their Roles
NACDC:
- Identify local school for financial literacy expansion and implementation;
- Develop Memorandum of Agreements with local identified expansion schools outlining roles and outcomes;
- Supervise Mini Bank Coordinator;
- Continue working with local bank to sweep accounts to Native American Bank;
- Provide orientation and training to local mini bank coordinator;
- Provide financial literacy program;
- Provide orientation to local schools;
- Provide local media information and press releases;
- Continue fund raising for programs;
- Provide software to track local mini bank data
Local School Districts:
- Establish banking hour times for students;
- Work with mini bank coordinator for successful program implementation;
- Establish school facilities to accommodate mini banking hours
Native American Bank, NA:
- Provide waiving of all fees for savings accounts
- Provide in-kind support
Wells Fargo Bank:
- Work with mini bank coordinator to establish accounts for deposits;
- Wire transfer deposits to Native American Bank
Vectra Bank:
- Work with mini bank coordinator to establish accounts for deposits;
- Wire transfer deposits to Native American Bank
Mini Bank Program:
- Provide full time management of the program to ensure success;
- Provide on-site banking hours for students to open new accounts and make deposits;
- Provide students with a financial literacy curriculum and instruction;
- Provide incentives for students to focus their savings on higher education, small business development or housing;
- Develop an environment which exposes students to explore future opportunities in banking professions;
- Expand program activities as necessary.
Time Line
February 1996: Browning Middle School chooses mini bank board members.
April 1996: BMS Mini Bank opens for business
January 1998: Napi Elementary chooses mini bank board members
January 1998: Napi Elementary opens first Mini Bank branch & Nizi Puh Wah Sin Utilizes BMS Mini Bank
December 2000: Browning High School chooses board members & Native American Youth Bank opens doors
October 2002: Nizi Puh Wah Sin Mini Bank establishes branch at their school
October 2003: Mini Bank expands to the De La Salle Blackfeet School
February 2005: Nizi Puh Wah Sin School opens accounts for 100% of their students
November 2006: Shoshone- Bannock Mini Bank opens in Fort Hall, ID
November 2007: Blackfeet Boarding Dorm opens Mini Bank
October 2008: Lillian Valley opens Mini Bank on Shoshone-Bannock Reservation
Octoebr 2008: Ute MT Ute opens Mini Banks in Montezuma- Cortez School District, Cortez, CO November 2008: Tyhee Elementary opens Mini Bank in Tyhee, ID
November 2008: Fort Peck Mini Bank opens in the opportunity Learning Center, Wolf Point, MT
January 2009: Fort Peck Mini Bank opens in the Northside Elementary