Todd’s story is not unique: a weather catastrophe has ruined his car and caused him to lose prized possessions; the clothes on his back are from strangers, and he hasn’t gotten paid since his employer has been closed for weeks. Expenses are piling up, the landlord wants the rent, and a savings account doesn’t exist. Desperation is setting in as the dominoes of Todd’s life are starting to fall around him.
A natural disaster doesn’t have to strike in order for those who have little or no savings to get into big trouble. According to a recent survey, almost 8 out of 10 Americans live paycheck to paycheck. Todd’s story may not be unique, but it is very personal to him, and he just may be a member of your credit union. As a financial institution leader, what will you do?
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.
Savvy credit union leaders used this information and implemented a tested and proven behavioral economics-based program developed by our partners at The Common Cents Lab at Duke University, a group that searches for solutions to increase the ﬁnancial well-being for low-to-moderate-income people living in the United States. Now, with our help, you can implement the Tax Time Savings Program in your credit union. This program encourages your members to save some or all of their tax refund. Last year, 27% of consumers 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.
Are you willing to stop the falling dominoes in the lives of your members? Connect with us today so you can roll out Tax Time Savings in time for next year’s tax season.