As Mirna and Oscar’s story illustrates, the importance of such comprehensive support can’t be overstated.  Growing up in poverty has lifelong consequences that hinder an individual’s ability to secure gainful employment and provide for their children.  As the lives of their children are then impoverished in similar respects, a cycle of poverty is created.  

The cycle of poverty may be a familiar concept, but the real-life impacts of poverty are extremely unfamiliar to most of us.  Poverty in the United States typically means malnutrition, respiratory diseases, poor healthcare (if any), unsafe housing (if any), insecure housing tenure, unsafe neighborhoods, under-resourced schools, ineffectual (albeit selfless) job-seeking networks, chronic psychological stress, depression, difficulty concentrating, decreased marriage rates, increased divorce rates and the list goes on.   

Helping those in need is not just the right thing to do.  It’s also good for society as a whole.  Poverty limits access to good education and healthcare, which in turn decreases economic productivity.  Healthy economies require workers with healthy minds and bodies.  This is why researchers contend that aid to the poor usually pays for itself over the long run.

In the United States generally and in the Bay Area specifically, poverty remains widespread.  According to the most recent US Census Bureau data, more than 37.2 million Americans live below the poverty line.  In the Bay Area, a UC Berkeley study found that 17% of the population is living in poverty.  In Oakland in particular, 2,200 babies are born into poverty annually, and less than 500 public school 12th graders go on to graduate from a junior college or university within six years of finishing high school.

With equity as its goal, Oakland Promise offers the kind of comprehensive cradle-to-career support that people need in order to have a fair shot at pursuing happiness.  Even the federal government’s threadbare social safety net provides significant relief.  Truly comprehensive support programs — that intervene during early childhood and sustain these efforts over the long run — can break the cycle of poverty once and for all.

All the families in Oakland Promise’s program meet four criteria: they live in Oakland, their children were born in Alameda County, their children qualify for Medi-Cal, and their children are still under 12 months of age when they sign up for the program.  At the outset, parents receive $500 for a 529 college savings account.  So far, parents have seen their childrens’ 529 savings accounts grow by 20%.  Parents then receive financial coaching and additionally earn a $100 stipend for every month they continue to utilize financial coaching.  To reinforce their hard work on reducing expenses and increasing savings, Oakland Promise matches every $25 that parents save per month for six months, and adds $50 for parents who save $25 every month for six months straight.  Their children will receive scholarships from kindergarten to college, and benefit from mentorships and other personalized support services.  As of October 2020, 750 children have been Oakland Promise scholarship recipients.  Perhaps most importantly, some of the Oakland Promise financial workshops have developed organically into peer support groups in which parents learn from, and grow with, each other.

In accordance with its philanthropic roots and its optimistic vision for Oakland’s future, Riaz Capital was one of the first businesses in Oakland to champion Oakland Promise.  In addition to providing financial backing for Oakland Promise, founder/CEO Riaz Taplin is a governing member of Oakland Promise’s board of directors.  As Taplin recognizes, “the first steps of any endeavor tend to be the hardest.  This is why Oakland Promise’s work is so vital.”

After participating in Oakland Promise for three years, Mirna and Oscar have stabilized their finances despite numerous obstacles.  By taking guidance on reducing expenses, saving money, seeking resources and being advocates for themselves, Merna and Oscar have been able to take some control of their lives and share this experience of empowerment with others in their community.  The many stories of people like Mirna and Oscar are encouraging.  But Oakland Promise’s work isn’t done until every child in Oakland gets a fair shot at making a decent life for themselves.