There has been a lot of enthusiasm recently around the launch of The Magnolia Mother’s Trust, and the excitement in our communities is palpable. There is renewed energy around trying something new as we prepare for the official launch next month.
But despite the momentum surrounding The Magnolia Mother’s Trust, Springboard has never believed that one program can be the solution. Poverty is never the result of one thing, and while we believe that offering families unrestricted cash is a critical step in breaking the cycle of poverty, we know other economic security measures are needed.
The Magnolia Mother’s Trust, like all Springboard programs, was born out of conversations with our families. Conversations that, yes, told us our families need cash, but also told us that our families don’t have bank accounts and cannot find accessible options. They told us that our families often use predatory tax preparation and loan making services because they feel they have no other option. They told us that paying for money orders and check cashing services add up quickly, and it’s impossible to think about saving when you’re just trying to make ends meet.
And Springboard has responded. Already in 2015, we launched our Family Self-Sufficiency program, allowing families who experience a rent increase due to a wage increase to save a portion of that increased rent in an escrow account that they receive upon completing the program. We began our Children’s Savings Account initiative, having now opened over 250 accounts with a $50 seed deposit and additional incentives for things like good grades and attendance, to ensure that all Springboard children know there is money put away for their future. This all comes in addition to personalized financial coaching and financial education on topics our families have expressed interest in, such as home ownership.
But we recognize that just providing financial education and programming is not enough. Historical factors like the legacy of slavery, racial discrimination, and fiscal policies stacked against low-income families have excluded our families from the financial system and asset-building products. That is why Springboard is proud to be the community organization partner for the City of Jackson’s Bank On Initiative. As a member of the steering committee, Springboard will help advise local banks and financial institutions as they work to create bank accounts that are inclusive and accessible to low-income families. We are excited to once again elevate the voices and experiences of our families to create real, systemic change.
We cannot wait to share with you all that we learn during this next season of innovation at Springboard. But as always, we want to ensure that the stories and voices of our families are at the center of that conversation. We thank you for joining us on this journey of learning and listening together!