savings strategies and techniques for low-to-moderate income households
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Savings Strategies and Techniques for Low-to-Moderate Income Households. Andrea Levere Seventh Annual Financial Literacy Leadership Conference, September 29, 2014. About CFED. - PowerPoint PPT PresentationTRANSCRIPT
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www.cfed.org
Savings Strategies and Techniques for Low-to-Moderate Income Households
Andrea Levere
Seventh Annual Financial Literacy Leadership Conference, September 29, 2014
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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.
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.
We combine the vision of a think tank with real-world experience to:
About CFED
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Liquid Asset Poorlack 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
Persistent financial insecurity
Source: 2014 Assets & Opportunity Scorecard, CFED (http://scorecard.cfed.org)
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High-cost loans are the only option for
many with subprime credit scores, which can create a cycle of
debt
No slack: liquid asset poor borrow to cover unexpected costs
Source: 2014 Assets & Opportunity Scorecard, CFED (http://scorecard.cfed.org)
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8.2%
20.1%
8.2% of households are unbankedNo checking or savings account
20.1% of households are underbankedHave an account, but still rely on alternative financial services
30.8%
30.8% of households do not have a savings account
Unbanked and Underbanked Households
Source: 2014 Assets & Opportunity Scorecard, CFED (http://scorecard.cfed.org)
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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
Savings and Asset-building Programs and Policies that Work