With some 2,000 organizations participating in America Saves Week ’09, the third annual event drew record participation. Millions of people were reached through local and national media, over 60,000 attended events, and tens of thousands opened or added to savings accounts or took other action to increase their savings.
Even among so much activity, however, the Cooperative Extension Service stood out for its significant contribution to Saves Week. An America Saves campaign partner since 2001, the nationwide educational network affiliated with land-grant universities and the U.S. Department of Agriculture provides community education on a variety of topics, including personal finance.
This year, Extension educators led Saves Week outreach efforts in more than 75 communities in 29 states. In many places, educators lined up community coalitions to promote savings and enroll Savers, including banks and credit unions, schools, public officials, local non-profits and community service organizations.
In addition, Extension-led efforts included:
financial fairs, seminars and workshops;
savings drives coordinated with local financial institutions;
events for children and families, including “Piggy Bank Beauty Contests;”
free tax preparation for low- and moderate-income individuals;
media coverage; and
proclamations from local elected officials.
Many of these and other Saves Week activities were funded by a grant from Capital One.
“America Saves provides an ‘action component,’ where we give people an opportunity to save, which is a natural next step to educational programs,” said Nancy Register, director of the America Saves campaign. “That complementary relationship is one of the reasons we’ve had so much success working with Extension educators and value the partnership.”
Capt. Rob Eckhardt is the first to admit that he hasn’t always been responsible with money. But less than 10 years after a rocky start to saving, Eckhardt reports that he and his wife are free from credit card debt, have a down payment on a home, and are saving regularly for retirement. And, as the Military Saves representative for his Air Force squadron, he’s helping others make similar progress.
Eckhardt credits his personal success to working with his wife and “building up good habits that we were able to stick with even after we got out of debt.”
“I started from a pretty bad place,” he said. “I was a young single guy in Vegas, and it was not a lifestyle where you were thinking about your long term future.” He listed some things he now considers financial mistakes: leasing a brand new car when his old car was sufficient, spending too much money on nights out, and racking up over $5,000 in credit card debt.
But when he met his future wife and got engaged, Eckhardt and his fiancé began to prioritize getting out of debt and becoming financially stable. Their combined credit card debt was nearly $25,000, so they started out by getting rid of their credit cards and setting a budget. Eckhardt also shipped to Iraq shortly after his engagement, and the tax-free combat pay he received made it easier to make ends meet.
The couple saves money by “eating at home 90 percent of the time,” he said. They also began tracking their spending and analyzing their budget together and would “celebrate if we paid off a credit card or reduced some debt significantly.” He also credits his wife for being “very responsible” about sticking to the budget while he was overseas.
In Eckhardt’s role as the Military Saves representative for his Air Force squadron, he works to find appropriate investment vehicles for other troops, get more troops signed up for the Thrift Savings Plan (a retirement savings program for government employees and member of the military), and helps spread the message about the benefits of saving.
During Military Saves Week, Eckhardt planned a briefing and held individual follow-up conversations for almost everyone in his squadron. “The message I’ve been trying to get out is to eliminate debt, as much as possible,” he said.
In talking with younger troops, Eckhardt recounts an experience he had in a cell phone store in Italy, where he is now stationed. As he was waiting in line, he listened to the young airman in front of him debate about whether he should get a new iPhone, even though he’d recently bought a new Blackberry and opportunities to use cell phones on base are limited.
“He was saying he would just blow his whole paycheck on a phone that he would barely use and had no need for,” Eckhardt said. “So I would tell that story, about how foolish it seemed to me that they would not be looking for ways to save money – after all, I’m not all that old and I’m trying to look for ways save.”
“It was such a mental relief for me to know I had no credit card debt.” – Capt. Rob Eckhardt, Military Saver
A new report from the America Saves campaign, released in February during Saves Week ’09, shows the effect the economic crisis is having on personal finances.
Over three-quarters of people surveyed said they are “concerned” or “very concerned” about the impact of the current recession on their personal finances. When compared with responses from the previous year, a slightly smaller percentage said they believe they are saving enough for retirement, and fewer said they expect to pay off their home mortgage before retirement.
Economic worry can be a major source of stress for individuals and families. It is cited as a top factor in divorces and marital fights. In addition, financially stressed individuals report lost sleep, constant worry, and a sense of being out of control. Women report an especially high level of concern over money.
That’s one reason experts recommend setting aside savings for emergencies. It’s not difficult to do; individuals at almost every income level have been able to build emergency funds. An emergency fund of $500 or a little more can keep unexpected expenses from becoming a financial nightmare.
The following tips can help you build your emergency fund:
Make it automatic.
The most successful savers have money automatically withheld from their paycheck or automatically transferred from a checking account into a savings account. Once you set up an automatic savings plan, you don’t have to do anything more to see your emergency fund grow.
Set up an account at a bank or credit union.
But do so carefully, paying attention to fees, minimums, and other potential costs. Most banks and credit unions offer low- or no-fee savings accounts, and banks may waive their fees if you have another type of account with them. You want to be sure you can get access to your account in case of emergencies. However, some people think it helps to make the emergency account inconvenient to access, so that they aren’t tempted to spend it for non-emergencies.
Find money to save.
Many people start by saving loose change, since saving 50 or 75 cents a day doesn’t feel like much, and you can accumulate hundreds of dollars over time. Look for and cut back on small, unnecessary expenditures. Carrying a notebook to write down everything you spend for a week can help you to find savings opportunities. The America Saves website (www.AmericaSaves.org) offers many practical savings tips from experienced Savers.
Involve your family.
By explaining what you’re trying to do, and getting input on what expenses can be cut, you can make growing your emergency fund a shared goal.
To cut my food cost down, I started making a monthly menu and base my grocery list on the menu. By doing this I’ve saved at least $200 a month.
Jeanie Prieb, Charlotte, NC
I work out at a gym five days a week, and I used to buy a bottle of water for almost every workout. I decided to start reusing the plastic bottles, which saves me $30 a month. Just that small change has helped me save money and helps protect the planet.
Graciela Caldera, Huntington Park, CA
After making a personal commitment to paying off my credit card, I determined how much I would have to pay each week in order to pay off my bill within a year. There were weeks when I couldn’t make the payment, but overall I didn’t get discouraged. Once I could see how I could pay off the debt, it didn’t seem that overwhelming.
Tina Shockley, Greenwood, DE
Take advantage of discounts and/or incentive programs provided through your employer. For example, the company I work for offers discounted rates for computers, fitness center memberships, movie tickets and passes to summer festivals. Check your corporate intranet or talk to your human resources representative. And don’t forget the best deal of all – investing in your 401(k)!
Tina Merwin, Milwaukee, WI
I only purchase clothing that’s on sale. You will be amazed at how much you can save by planning ahead and waiting until the item goes on sale. Plus, I only buy clothes that are machine washable and iron them myself, which helps me avoid dry cleaning costs. This adds up to a substantial savings for my family over the year.
Joseph Collins, Vacaville, CA
It’s now fashionable to not only pack your own lunch instead of eating out, but to also use a cloth lunch bag. Packing your lunch in a reusable bag eliminates the cost of disposable bags and helps save the environment.
Gail Bobish, Landenberg, PA
Plant a victory garden!
Pamela Price, Wilmington, DE
Editors Note: Fruit and vegetable gardens maintained by individuals and families for their personal use were dubbed ‘victory gardens’ during World War II, as these gardens contributed to the war effort by easing pressure on the public food supply. Planting your garden can not only provide you with fresh, healthy, locally grown fare, it can help you achieve financial ‘victory’ by reducing your food costs.
One way to establish a savings discipline is to “save” an amount equal to whatever is spent on non-essential indulgences. Put a matching amount in a cookie jar for expenditures for beer, wine, cigarettes, designer coffee, etc. If you can’t afford to save the matching amount, you can’t afford the $4 super almond low-fat latte.
York County Saves (ME) hosted “Surviving to Thriving: Getting Through Today’s Tough Times,” a free program focused on helping families spend wisely, budget, and save during tough economic times. The program was designed and presented by a partnership that included the York County CA$H Campaign, York County Community Action Housing Services, the Strong Fathers Network, and Women, Work and Community.
Wisconsin Saves kicked off Saves Week with a press conference in Milwaukee headlined by Wisconsin State Treasurer Dawn Marie Sass. The press conference was featured on local TV and in newspapers statewide. The campaign also hosted saving workshops and a training event to encourage local community organizations and financial institutions to get involved in the campaign.
Pierce County Saves (WA) sponsored a “Connect With Your Money” day-long event that included financial workshops and motivational talks. Three area banks and four credit unions promoted savings and helped customers open new savings accounts during the week.
More than 1,000 people in the Newport News, VA area were reached through classes, publications and other events during Peninsula Saves Week. More than 300 new savings accounts were opened at participating banks and credit unions during the Week, with total deposits of over $60,000.
Over 400 people attended an Eco-Nomic Living Expo hosted by Okaloosa Saves (FL) during Saves Week. The event included exhibits, workshops, and the “Piggy Bank Pageant.” A highlight of the day included a talk by financial expert Deborah Owens, who advised the audience to “Nickel and Dime Your Way to Wealth.” Remodeling expert Danny Lipford talked about “Going Green on a Budget.” The campaign also did extensive media outreach and was featured on billboards, radio, television, and in newspapers.
Kansas City Saves reached more than 200,000 citizens this past winter thanks to partnerships with several media outlets that featured savings advice and profiled successful savers during Saves Week.
First State Saves kicked off Saves Week in Delaware with a tribute to Rashmi Rangan, executive director of the Delaware Community Reinvestment Action Council (DCRAC). The campaign gave Rangan the 2009 Saving Star Award in honor of her dedication to financial education in Delaware. On hand to help celebrate the occasion were Delaware State Treasurer Velda Jones-Potter, New Castle County Executive Chris Coons, and America Saves Director Nancy Register.
DC Saves held its 2nd Annual DC Saves financial fair in April. Over 20 exhibit tables included financial institutions, employment training programs, youth financial education programs, and legal services. The campaign also offered 10 seminars ranging from credit and savings to foreclosure prevention and starting your own business, offered one-on-one credit counseling, and had certified financial planners available to address questions on all areas of financial planning and management.
Colorado Saves Week organizers in Ft. Collins held a create-a-piggy-bank contest at a local mall, attracting both youth and adult Savers competing to win U.S. Savings Bonds. Governor Bill Ritter also declared Feb. 22 to March 1 Colorado Saves Week.
Illinois State Treasurer Alexi Giannoulias hosted a “Smart Women Smart Money” seminar in March for Champaign County Saves. More than 275 people were on hand for the event. The campaign continues to offer free weekly classes and other ongoing events.
