Vermont has found a way to make banking accessible to teens in foster care. It hopes others will follow.

Matt Callahan, Transition House Case Manager at the Howard Center in Burlington, Vermont, knows the banking challenges faced by teens in the foster care system:

“Access to banking had been nonexistent for most of the youth we serve. Unlike their peers with more traditional supports, these teenagers had no opportunity to develop and practice invaluable living skills such as financial literacy, managing bills, budgeting and saving – skills that are critical for smooth and successful transitions to independent living.”  

For many teens, summer vacation is a time to earn extra spending money and build up savings. But most teens in foster care – without an adult co-signer – can’t open a bank or credit union account on their own. They have two options: Cash their paychecks, and do their best to keep the money safely hidden; or open an account with a joint owner at risk of having their money taken without consent. Because of this, teens in State custody are disproportionately vulnerable to having their money and identities taken by the adults in their lives. But for teens in the care of the State of Vermont, there’s a solution. Working with the Green Mountain United Way and the Vermont Department of Children and Families, NorthCountry Federal Credit Union (NorthCountry) developed the Indy Account, a special checking account for foster children ages 14 to 17.
 
Scott, age 17, uses the Indy Account to manage his money on his own. “It’s been awesome to have my own checking and savings account. Having direct deposit and a debit card has been fabulous for convenience and keeping my money safe. It’s really helped me learn to budget and save toward my goals of buying a car hopefully soon and getting my own place one day.”
 
Callahan adds, “The Indy Account allows our young adults access to the tools and experience they would not otherwise have.”

By removing the barriers that require an adult’s signature, the free checking account provides teens in foster care with a safe place to keep and access their funds in person, at ATMs, and with debit cards. Indy Accounts also come with a designated resource person at the credit union to answer questions about managing the account.

“For years, youth in foster care have voiced their concerns about not being able to reliably and safely open bank accounts for saving their money and preparing financially for young adulthood.  We are so excited that through this partnership, statewide access to banking and financial goal setting and education is available for young people who don’t otherwise have this important opportunity,” states Amanda Churchill Kipp, DCF-FSD, Adolescent Services, State of Vermont

Indy Accounts are available to any child who is 14 to 17 years old and living in the care of the State of Vermont. A referral from a caseworker is required. The account includes:
•    Free checking and savings
•    No minimum balance requirement
•    Free digital banking
•    Free debit card
•    Free transactions at NorthCountry Federal Credit Union ATMs
•    Free official checks
•    Free assistance from staff
 
NorthCountry Federal Credit Union is committed to helping people find a financial path forward, and recognizes the potential to have a positive impact where others haven’t. It is a not-for-profit financial cooperative serving northern and central Vermont, as well as specific counties in New York and New Hampshire. Funds are insured to $250,000 by the NCUA.