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The Mind of Low- to Moderate-Income Savers

This brief reviews the research findings from D2D studies which explored money and savings, and children's financial security in low- to moderate-income consumers.

Executive Summary

The credit union industry and D2D Fund share a common interest: better understanding the mind-set of low- to moderate-income (LMI) consumers regarding personal finances and financial services. For credit unions, attracting LMI customers is important to their mission of ā€œmeeting the credit and savings needs of consumers, especially persons of modest meansā€ and an important part of what distinguishes them from other depository institutions. As a nonprofit organization devoted to helping low-income families address their financial service needsā€”especially the need for saving opportunitiesā€”D2D knows it must understand these consumersā€™ thoughts, feelings, and attitudes about personal fi nance in order to serve them effectively.

What is the research about?

D2D explores LMI receptivity to savings product marketing using a cutting-edge marketing research tool, the Zaltman Metaphor Elicitation Technique (ZMET). ZMET is an innovative research methodology that elicits insights about human decision making through metaphors and storytelling. Using a sophisticated interview technique, researchers encourage consumers to create stories and identify images about their feelings related to a topic of study. From these stories emerge metaphors, messages, and imagery that professional marketers use to build brands and products (e.g., ā€œChevy, Like a Rockā€). The ZMET tool can deepen our understanding of how to increase saving activity among LMI households. As a result, the two ZMET studies D2D has undertaken focused on how LMI consumers approach money and savings, and their childrenā€™s financial futures.

What are the credit union implications?

With the help of the innovative ZMET research technique, D2D Fund is probing the deepest, most intimate, and least well-articulated feelings of low- to moderate-income consumers regarding money, saving, and financial services. Insights from this research will inform the development of new marketing tools, including collateral, aimed at increasing saving among LMI consumers.