DCF Family Services Division Partnership with NorthCountry Federal Credit Union Builds Financial Literacy and Stability for Youth in Foster Care

Waterbury, Vt. - The Department for Children and Families (DCF) Family Services Division (FSD) and NorthCountry Federal Credit Union (NCFCU) announced a partnership in 2023 to provide barrier-free access to bank accounts for youth in foster care in Vermont.

Foster youth in Vermont, and nationally, regularly encounter challenges when opening bank accounts. The process requires approval from their legal guardian - in their case, the state. Their custody status often leads to additional bureaucratic stumbling blocks along the way. This has left many young people without a place to save money or practice financial skills and independence.

Since the start of this partnership, NCFCU has opened over 66 bank accounts for youth in foster care, offering these young people the opportunity to gain important financial literacy skills and sounder financial footing when they exit foster care and begin their adult lives.

Through these "Indy Accounts," youth ages 14-17 in foster care can open no-fee accounts in their own names, gaining experience managing their own money. Indy Accounts are checking accounts specifically tailored to youth in DCF custody. There are no fees, accounts cannot be overdrawn, and there is no minimum balance required. Youth in foster care can enroll at any NorthCountry Federal Credit Union branch in Vermont, or by phone if there is no local branch.

This initiative supports the bank's social mission, with NCFCU assuming all liability for these accounts.

"Young people have shared that they need a safe place to save their earnings and learn basic financial skills," said Aryka Radke, Deputy Commissioner of DCF's Family Services Division. "This partnership with NorthCountry Federal Credit Unionhonors those voices and reflects Vermont's commitment to ensuring every youth in our care can move toward adulthood with dignity, stability, and the support they need to thrive."

Of the partnership between DCF and NorthCountry Federal Credit Union, Jeff Smith, NCFCU Senior Vice President of Lending said, "We are excited for the continued evolution of this amazing program that brings together the best of all of us - people, organizations, government, and community."

DCF youth who have participated in the program have shared:

"(Bank accounts) allow you to save money for after you turn 18, so you almost have a head start and don't have to start from scratch. When you turn 18, a lot of things become available to you, and having a bank account is one less thing you will have to worry about. It also can teach good money value and how to responsibly save and spend."

"Not having a bank account often makes you not want to have a job. Partially because it's harder to save and see how much you're saving and also because having the money in cash presents the danger of the money getting taken by someone."