The Wealth Gap: Youth Experiencing Homelessness

This is the second in a series, The Wealth Gap, of several blog posts detailing wealth inequality in Massachusetts and how the Midas Collaborative has been working to advance the financial security of low- and moderate-income individuals for over two decades.

In a recent blog, we established housing as a driver of wealth inequality. Massachusetts is ranked sixth highest in the nation in regards to total number of people experiencing houselessness, which reached 18,471 in 2021. Many people experiencing homelessness are “un-banked”, or without a bank account, due to a lack of a permanent address.  Subsequently, they are unable to save. The lack of a bank account and address can exacerbate unemployment; seventy five percent of young adults experiencing homelessness are unemployed. This is a difficult cycle to break, as the acquisition of an address cannot happen without saving and saving cannot happen without a bank account.

Midas tackles this problem by partnering with member organization and fellow Boston-based nonprofit, Breaktime. Breaktime helps young adults experiencing homelessness to find employment opportunities and build a stream of income. In order to help these young adults build their resources, Midas administers matched-savings bank accounts coupled with one-on-one financial coaching from Working Credit financial counselors.

This process of connecting Breaktime participants to Midas’s resources helps to turn income into immediate economic resources and gives participants access to the financial system. By providing access to a bank account, Midas supports Breaktime members as they secure an address that will open doors to more opportunities and financial independence.