Absence of conflict of interest.
Citation
Highlights
- The study's objective was to examine the impact of the Boston Youth Credit Building Initiative (BYCBI) on financial knowledge and behaviors.
- The study used a randomized controlled trial to assign participants to the BYCBI program or the control group. Study data included a pre- and post-program survey and credit scores of program participants. The authors used statistical models to compare outcomes between treatment and control group participants.
- The study found that BYCBI participants had significantly higher financial knowledge and reported more positive behaviors than control group participants.
- This study receives a high evidence rating. This means we are confident that the estimated effects are attributable to Boston Youth Credit Building Initiative (BYCBI), and not to other factors.
Intervention Examined
Boston Summer Youth Employment Program (BYCBI)
Features of the Intervention
The Boston Youth Credit Building Initiative (BYCBI) was developed by the Boston Mayor’s Office of Financial Empowerment and implemented by the Working Credit NFP (not-for-profit) from March 2016 through March 2017. The intervention was designed to help individuals gain access to credit and build strong credit scores. The BYCBI provided participants with (1) a one-hour workshop to understand credit reports; (2) one-on-one coaching to review credit reports and develop a budget and an action plan to increase credit score; and (3) enrollment in a CW-3 matched savings account. The program served low-income young adults (ages 18-29) who were currently employed or were in a workforce development program.
Features of the Study
The study was a randomized controlled trial conducted at 18 educational and community-based organizations in Boston, Massachusetts. Young adults who applied for the program were randomly assigned to the treatment and control groups. Of the 300 eligible participants, 150 were assigned to the treatment group and 150 were assigned to the control group. The treatment group received BYCBI services (financial workshop, one-on-one coaching, and CW-3 matched savings account), and the control group did not receive any program services. The study sample were primarily female (58% treatment vs. 63.3% control), between the ages of 18-24 years (60.7% treatment vs. 58% control), African American (48.7% treatment vs. 50% control), and were employed with less than a one-year tenure at their current job (64.7% treatment vs. 60.7% control).
The primary data sources were an administrative credit report and pre- and post-program surveys. The administrative credit reports were pulled at baseline, 6-months, 12-months, and 18-months to detect changes within participants credit reports. The survey collected information about participants’ current financial situation and knowledge about credit building. Study participants completed the pre-survey at program entry and the post-survey by email after completion of the program (at 12 months). The authors used statistical models to compare the outcomes of the treatment and control groups.
Findings
Knowledge and skills for money management
- The study found that treatment group participants had a significantly larger increase in their financial knowledge scores than control group participants.
- The study also found that treatment group participants had significantly larger credit score increases than control group participants.
- The study found that treatment group participants were significantly more likely than control group participants to have a debt management plan.
- The study also found that treatment group participants were significantly less likely than control group participants to use alternative financial services (e.g., payday lender), to be contacted by collection agencies, to have a utility company hold a deposit, and to be evicted.
Considerations for Interpreting the Findings
The study authors note that only two-thirds of the treatment group completed the program; attending at least the workshop or one coaching session (study compilers). Of the study compliers, only 53 participants in the treatment group were eligible for enrollment in the CW-3 matched savings account and of those 53, only 60% chose to enroll. Therefore, the authors could not complete their analysis for this portion of the intervention.
Causal Evidence Rating
The quality of causal evidence presented in this study is high because it was based on a well-implemented randomized controlled trial. This means we are confident that the estimated effects are attributable to the Boston Youth Credit Building Initiative (BYCBI), and not to other factors.