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Savings Strategies and Techniques for Low-to-Moderate Income Households

Savings Strategies and Techniques for Low-to-Moderate Income Households. Andrea Levere Seventh Annual Financial Literacy Leadership Conference, September 29, 2014. About CFED.

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Savings Strategies and Techniques for Low-to-Moderate Income Households

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  1. Savings Strategies and Techniques for Low-to-Moderate Income Households Andrea Levere Seventh Annual Financial Literacy Leadership Conference, September 29, 2014

  2. About CFED CFED (Corporation for Enterprise Development) empowers individuals and families to build and preserve assets by advancing policies and strategies that help them go to college, buy a home, start a business, and save for now and for the future. We combine the vision of a think tank with real-world experience to: Identify Good Ideas: CFED’s research finds ideas with potential for making the economy work for everyone, particularly those on the margins. Develop partnerships: CFED works in partnership with diverse organizations across the country to promote lasting change. Bring Them to Scale: CFED brings together community practice, public policy and private markets to achieve the greatest economic impact.

  3. Persistent financial insecurity Liquid Asset Poor lack savings to cover basic expenses for three months if job loss, a medical emergency, or other crisis leads to a loss of income $5,887 for a family of four Source: 2014 Assets & Opportunity Scorecard, CFED (http://scorecard.cfed.org)

  4. No slack: liquid asset poor borrow to cover unexpected costs High-cost loans are the only option for many with subprime credit scores, which can create a cycle of debt Source: 2014 Assets & Opportunity Scorecard, CFED (http://scorecard.cfed.org)

  5. Unbanked and Underbanked Households 8.2% of households are unbanked No checking or savings account 20.1% of households are underbanked Have an account, but still rely on alternative financial services 30.8% of households do not have a savings account Source: 2014 Assets & Opportunity Scorecard, CFED (http://scorecard.cfed.org)

  6. Savings and Asset-building Programs and Policies that Work Boost Savings Emergency savings, IDAs, prize-linked savings Children’s savings accounts Retirement savings (e.g. Obama’s myRA proposal) Increase Consumer Protections New “cop on the beat” with the Consumer Financial Protection Bureau Curb predatory payday and small dollar lending

  7. Andrea Levere, President, CFED alevere@cfed.org

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