Todd’s story is not unique: due to the weather catastrophe, his car is ruined, prized possessions lost, the clothes on his back are from strangers, and since his employer has been closed for weeks, Todd hasn’t gotten paid. Expenses are piling up, his landlord wants his rent, and he doesn’t have a savings account. Desperation is setting in as the dominoes of his life are starting to fall around him.
Todd’s story may not be unique, but it is very personal to him, and he is like thousands of Americans who live paycheck to paycheck. A natural disaster doesn’t have to strike in order for those who have little or no savings get into big trouble. As a financial institution leader, what will you do?
While your team is working on the immediate problems, consider the long game: what can your organization do to help members save for the next emergency?
Too often we come up with “let's increase our financial education offerings”, but it’s clear those efforts should be a part of a strategy, but not the entire plan. Savvy credit unions are using Behavioral Economics to understand how to make solutions more powerful and long-lasting.
You can join other savvy financial institution leaders today by focusing on the upcoming tax season. Consider this:
84% of households making less than $51,000 expect a tax refund, and the average tax refund for these households is between $2,100 - 2,500.
We have a behavioral economics based Tax Time Savings Program that encourages your members to save some or all of their tax refund. In other CU implementations last year, 27% of members exposed to the program participated and elected to save an average of 35% of their tax refund, resulting in savings for emergencies that hit this year.
You need to start soon if you want to help members with this program. File your return with us today.