Build Wealth

Beyond American’s investments in a home and contributions made to their employer’s retirement plan, Americans simply aren’t saving. Too many people live paycheck to paycheck and are a small step away from financial disaster. At the same time American’s are not saving, they are increasing their debt burdens and relying on their credit cards as a financial safety net rather than savings.

Auto Savings tries to combat this lack of saving. This idea promotes forced savings by giving members the option of signing a contract to add a specific amount for saving to each auto loan payment. By bundling consumption and savings, these products overcome the obstacle of a lack of self-discipline by making savings automatic and painless.

This idea explores engaging the younger demographic thru an online game. Based on basketball’s NCAA bracket play, this idea uses teams and the stock market instead.

The First Step Program targets people who are underserved by banks (those who often gravitate toward check cashers and payday lenders) and assists them in reaching their dreams of getting “one step closer towards financial freedom.”

The key to this program is for credit unions to partner with local community based organizations who have earned the trust and respect of these consumers by serving them when others would not.

The Hi 5 Youth Savings Account can start to turn the American tide toward savings and grow financial literacy, member loyalty, and household penetrations. The program provides a stronger incentive for members to embrace saving by offering a monthly “matching” deposit to an established youth account and by requiring mandatory financial education be completed by the youth before account money is available at age 18. The Hi 5 Account forms a partnership between the parent(s) who deposit(s) money, the credit union that rewards those deposits with matching funds, and the child who learns and reaps the benefits of saving.

LOT$A MOT$A is an idea for a destination where young people can go to learn the basics about money (mot$a) through fun, interactive experiences.

Structured as a CUSO, it will give member credit unions the ability to help children learn about the industry, as well as money management. Financial education takes place in a fun setting that is designed to feel different than a regular classroom and is instead filled with interesting technology, creating an exciting ambiance.

We believe there is an opportunity to help members meet their desire to save more by implementing a robust automatic savings program tied to debit card usage. The program would allow members to round up their debit card purchases to the nearest dollar, and then deduct that rounded amount from their checking account and have it moved into a savings account. The credit union could then offer a match on the saved amount while offsetting the cost via increased debit card usage.

Imagine America’s credit unions making one credit union member a millionaire every month via a live televised drawing on David Letterman. Why not think big! The project focuses on a credit union savings account product that provides incentives to save through random drawings. Based in part on Harvard research and savings account innovations in European and Latin American countries, the product goal is to stimulate saving habits for credit union members. Professor Peter Tufano of the Harvard Business School recently discussed his thoughts on how to make saving a fun or satisfying experience in Innovative Ways to Encourage Personal Saving. Also, to learn more about other credit unions now implementing similar projects, click here. Also, visit the D2D Fund Web site for information on similar efforts.

Like Weight Watchers for your wallet, the Savings Revolution uses reality television, online interaction, and individual planning to encourage members to reduce debt, increase savings, and get control of their financial lives. The innovation is composed of two interrelated parts, one part inspiration (the Savings Revolution) and one part implementation (the Savings Challenge). Click here to find out more about how other credit unions are involving their members in the Savings Revolution.

Unite is a relationship pricing program that will allow a group of credit union members to benefit from the collective value of participating in specific credit union products and services. This “friends and family” type of program is designed to change behavior in product usage. Members create their own Unite group, and product usage, including checking accounts, debit and credit cards, online bill payment, etc. qualify the group to earn points. These points are tracked for the entire group, and as certain point thresholds are reached, everyone benefits.

Unite will also help introduce new members to the benefits of credit union membership, retain existing members, expand consumption of products and services per member, and ultimately help create credit union advocates in the community.