AUSTIN, Texas–Capitol Credit Union said it is partnering with the Texas Department of Family and Protective Services on the launch of the PAL (Preparation for Adult Living) program.
That program is designed to support foster youth who are aging out of the system. This innovative initiative aims to provide these young adults with the financial education, resources, and mentorship they need to successfully transition to independent living, the credit union said.
In an interview with Studio 512, CCU President and CEO, Pierre Cardenas said the program provides hands-on banking account access within a controlled environment, to teach them about handling money and saving for the future.
‘Three-Tier Approach’
“This program is offered in a three-tier approach to allow youth as young as 14 and 15 years old to participate in the pilot program and learn how to manage money. It is a very bold and courageous effort to help foster youth build foundational financial knowledge prior to aging out of foster care,” Cardenas said. “One of the core components of the PAL Program is financial education. Participants gain essential money management skills, learning how to budget, save, and build credit responsibly. With this knowledge, they can make informed financial decisions that set them up for long-term success.”
Cardenes further said Capitol CU has embedded a financial education app within its online banking system that provides youth with basic financial learning modules that reward them as they learn.
‘Basic Financial Info’
“Each Account Tier for the age group is set up to provide the youth with basic financial information that rewards them with cash for completing the course work,” he told Studio 512. “They actually get rewarded for learning about finances! Financial independence doesn’t happen overnight, which is why CCU pairs each participant with a dedicated mentor. These mentors, drawn from the credit union’s team, provide guidance and practical advice, helping foster youth navigate their personal financial journey with confidence.”
Cardenes noted that for many foster youth, opening a checking account is a major hurdle and it helps participants set up both checking and savings accounts.