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Taking it All into Account

August 26, 2010 By Olu Johnson Leave a Comment
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Payday loans can carry annual interest rates of almost 400%

The recent Great Recession has among other things caused many low- to moderate-income individuals to turn away from traditional financial services like banks. The reasons people give range from convenience  to having quicker access to their paychecks.  A recent USA Today article quotes many people who are turning to check cashing places because either they’ve had a bad experience with their bank or have been charged excessive fees.

This is part of a larger trend nationally, and certainly one that we see here in the Bay Area. As many as 26% of Oakland residents are “unbanked” (as compared with 8% of all US households, 17 million people),  with African-Americans and Hispanics much more likely to use alternate means of banking than whites.

Locally, through our Bank On initiative we’ve been trying to reverse that trend and bring families back into the banking system for a number of reasons. The convenience that many people cite has hidden costs. This is something we’ve covered in this space before as there are many different services that appear to aimed at low to moderate income individuals that promise less hassle or convenience but have hidden costs that add up quickly. From the article:

A 2008 study by the Pew Charitable Trusts estimated that the average “unbanked” household in California spends $700 a year just to cash checks. When they need to borrow money, unbanked consumers often turn to payday loans, which carry annual percentage interest rates of 380% or more.

Additionally, studies show that people with bank accounts are more likely to save and move up the economic ladder to financial security.  This is why Bank On is a key part of United Way’s strategy to help families gain financial stability as we move towards our goal of cutting poverty in half in the Bay Area.

The whole article is worth reading, and it even gives a nod to the efforts of United Ways around the country who are also using the Bank On model which works with major financial institutions to offer “second chance” accounts.

(photo via flickr user Jeremy Brooks)

Filed Under: Pathways out of Poverty Tagged With: , , , ,

Planting Seeds to Prevent Poverty

August 18, 2010 By Olu Johnson Leave a Comment
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A recently published article takes a look at how learning can be boosted amongst children, when they are involved with school gardening projects. Specifically they found that involving children in school gardening boosted their learning and development in many areas, such as increasing:

  • Scientific knowledge and understanding, from botany to food production.
  • Literacy and numeracy, including widening vocabulary.
  • Listening and spoken interaction (“oracy” skills).
  • Awareness of the seasons.
  • Physical skills, including fine motor skills.
  • Confidence, resilience, self-esteem, emotional wellbeing, positive behaviour and sense of responsibility.
  • Positive attitude to healthy food choices.

As part of our Community School Partnerships, we’ve been putting this knowledge to practice for years now. At one of our schools in north Richmond, the Verde Partnership Garden has been producing positive results amongst participating students for years. The garden is a patch of paradise. Vegetables native to Asia, Africa and South America thrive in continent shaped plots. Science, art and English lessons revolve around garden projects. Older students teach younger students how to sow seeds, and everyone learns how plants can heal people.

The program promotes academic excellence, boosts attendance and prevents youth violence, while fostering a school-community connection.

“In a neighborhood where the high school graduation rate for adults is 50%, it is critical that learning is relevant and meaningful,” says Cassie Scott,Verde Partnership Garden Program Director.

And the state of California benefits, too. As Paul Buddenhagen, of the school’s “VIP”program (Verde Involving Parents) points out, “State test scores have improved and student attendance has increased significantly, helping bring in nearly half a million dollars of government funding over the last five years.”

Filed Under: Education, Pathways out of Poverty Tagged With: , , , ,

Thanks A Billion UPS!

August 2, 2010 By Olu Johnson Leave a Comment
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In the last 10 years UPS workers have donated more $13 million to United Ways of Northern California

This summer, UPS and its employees and retirees will reach the exceptional milestone of $1 billion in total contributions to United Way since the company began its annual workplace campaigns in 1982.

“UPS is a driving force for change in our communities. The company and its employees continually raise the bar for United Way’s Global Corporate Leaders and are among our most valued partners,” said Brian Gallagher, president and CEO of United Way Worldwide. “Reaching a billion dollars in giving is a remarkable milestone. It not only speaks to generosity that is second-to-none, it’s indicative of their tireless and unwavering commitment to strengthening communities and improving lives throughout the world.”

In 2009, UPS’s total philanthropy reached nearly $100 million, including more than $55 million from their 2009 workplace campaign. UPS has been the top corporate giver to United Way for nine of the last 10 years. UPS employees and their families also contributed more than 1.2 million hours of volunteer service last year through the company’s Global Volunteer Month and Neighbor-to-Neighbor program. UPS has twice won the United Way Spirit of America Award, United Way’s highest national honor for corporate citizenship and measurable community impact.

“To my knowledge, UPS is the first company ever to have contributed $1 billion through one organization, a tremendous accomplishment both for our employees and the communities that benefit from United Way services,” said The UPS Foundation President Ken Sternad. “Wherever there is a stop light or stop sign in America, there is likely a UPS driver passing by; they are part of the community, they see the needs, and they have been a key part of the $1 billion story. We appreciate the recognition that our drivers, and our company, is receiving from United Way.”

Locally, UPS and its employees have contributed millions of dollars and volunteer hours to the Bay Area. We are proud to have them as our partners. So when you see your UPS driver, tell him or her, thank you!

You can also sign an online thank you card for UPS here.

Filed Under: Pathways out of Poverty, United Way Partners, Volunteer Tagged With: , , , ,
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