Build Up Membership Through Supportive Savings Programs

  • Share:
marketing

CUTrendScan

One of the key benefits of financial stability is being well-equipped for an emergency, and many Americans are not. It has been widely reported that 40 percent of Americans can’t cover a $400 expense at a moment’s notice, according to the 2017 Economic Well-Being of US Households report. A 2016 study by the Financial Industry Regulatory Authority (FINRA) also found that 38 percent of Americans have expenses equal to their income, and 18 percent spend more than their income. Additionally, 19 percent of respondents say they overdraw their checking account as a result of making ends meet. Other indicators of financial pressure and the inability to save are loans taken from retirement accounts (13 percent), hardship withdrawals from retirement accounts (10 percent) and late mortgage payments (16 percent).

Another study in 2016 by Bankrate found that 63 percent of Americans surveyed don’t have enough emergency savings to last six months. Roughly 23 percent said they had no savings whatsoever. According to experts, many Americans attribute their financial situation to low wages, high cost of living, debt and lack of financial knowledge. Oftentimes, regret over not having saved enough for retirement does not kick in until it’s much too late — and Americans that voice financial regrets pinpoint not saving more as their number one mistake.

Americans regret not saving enough

The most common financial regret for Americans is not saving enough for retirement, quickly followed by a lack of an emergency fund, taking on too much credit card debt or — and this is especially true for millennials — being straddled with student loans. According to a study by Northwestern Mutual, one in every three Americans have less than $5,000 in retirement savings. One in five have no retirement savings at all. Of the baby boomer generation, one in three have less than $25,000 in retirement savings. Americans are working longer, but that doesn’t necessarily mean that they are saving more for retirement: 46 percent of adults have no plans in place for the likelihood they will outlive their savings, and 55 percent say they will be working past the age of 65 out of necessity.

How they are dealing with it

Many Americans know they are in dire financial straits, and they are determined to get out of it. According to a recent Bankrate survey, at least 49 percent of people who say they have financial regrets are also working on a plan to improve their finances. Another 10 percent say they will tackle a plan in the next six months, and nine percent say they will have a plan in place in the next six to 12 months.

However, 25 percent of those with financial regrets say they have no plans to turn around their finances. All of these groups can benefit from solid financial literacy programs, but perhaps none more than the people who are actively engaged in turning their finances around.

According to the Raddon study, millennials are among one of the demographics that see the highest value in financial literacy programs from their financial institution, with 55 percent of millennials surveyed saying they find such programs vitally important. Millennials are also among the most likely to bring more business to their bank or credit union through these programs, with 28 percent replying in the affirmative.

Persuading Americans to save more and expanding their financial knowledge can be achieved together with the right program—one that aids, promotes and rewards saving while tying into other healthy habits like establishing a budget to allow for more saving. With the desire to save more already in mind, members are ripe for participation when their credit union can offer such a rewarding program.

  • Share:


« Return to "Trends"
TrendScan logo
<< Back to Articles

Latest Trends

  1. The Member Service Experience
  2. Become a Tax Resource for Members
  3. Should You Still Be Concerned about ADA Website Compliance?
  4. What Is a DDoS Attack and Why Should Credit Unions Be Concerned?
  5. Anticipating Change with a Succession Plan
  6. Don't Get Snagged on ADA Compliance Requirements
  7. The Performance Management Conundrum: Structure vs. Creativity
  8. Experience Company Growth and Discovery with Employee-Driven Communication
  9. The Planning Process - Improved
  10. Building a Website with the User in Mind
  11. Content Marketing: Well Worth the Effort
  12. Your Social Media Accounts Deserve Quality Content
  13. Are You Ready to Adopt a Continuous Performance Management System?
  14. Continuous Performance Management is Disrupting HR
  15. What Credit Unions Should Do with Ambiguous ADA Standards
  16. The Website Audit Your Credit Union Needs
  17. 5 Things Credit Unions Can Learn from Cyber Attacks
  18. Optimizing Websites for Voice: What You Need to Know
  19. The Importance of Creating Quality Content
  20. 3 Succession Plans Your Credit Union Needs
  21. 7 Tax Changes Your Members Need to Know About
  22. Whatís Hot in Performance Management Technology
  23. Americansí Lack of Financial Literacy Is an Opportunity for Credit Unions
  24. Are You Properly Rewarding Your CEO?
  25. Credit Unions Could Replace Predatory Lenders
  26. Why HR Should Take Advantage of Employee Self Service
  27. The Quest for a One-Stop Shop Financial App
  28. Is Your Executive Compensation Still Appealing?
  29. 3 Website Design Trends for 2019
  30. Consumer Appetites in Mobile Innovation
  31. 3 Ways Credit Unions Can Prepare for a Cyber Extortion
  32. Build Up Membership Through Supportive Savings Programs
  33. Consumer Attitudes Toward Digital Advertising
  34. The Credit Union Advantage for the Digital Customer
  35. Wanted: Apps for Clarification and Simplification
  36. People Analytics: Bringing HR and Data Together
  37. Popular DDoS Mitigation Methods in 2019
  38. Volunteer and Young Board Members Need Development
  39. Prioritizing the Credit Union Employee Experience
  40. The Win-Win Results of Prize-Linked Savings for Credit Unions and Members
  41. 3 Key Factors for Creating Good Content
  42. 4 Steps to Increased Social Media ROI
  43. Shifts and Trends to Know About in E-Learning
  44. What the C-Suite Wants out of Social Media
  45. Credit Union Compensation: Philosophy or Strategy?
  46. Is Your CMS the Right Fit?
  47. How Useful Are Member Personas for Credit Union Marketing Teams?
  48. Selling Payments and Wealth Management Services
  49. A Simple Way to Unify Your Marketing Efforts
  50. How Credit Unions Can Formalize the Branding Process
  51. Keeping Up with Digital Lending Convenience
  52. Making Sure You Have the Right Leaders in the Right Seats
  53. Learning Management Systems: What Credit Unions Should Consider
  54. How Credit Unions Can Embrace Storytelling in Marketing
  55. How to Identify What You Want in an ESS
  56. Empowering Employees and HR with the Latest Technology
  57. Credit Unions Can Complete with Shadow Banks
  58. The Dream Team for Successful Online Customer Interactions
  59. How to Generate Content with Fewer Resources
  60. 2 Big FinTech Goals for Credit Unions
  61. Are You Missing Out on the Power of Video?
  62. Are Your Landing Pages up to Snuff?
  63. Do You Know Why Payday Loans Are Used so Much?
  64. If Your Site Isn't Mobile Optimized, You're Losing Out
  65. Protect Your Credit Union with a Website Accessibility Response Plan
  66. What Borrowers Wished Credit Unions Knew
  67. 6 Factors for Choosing the Right ESS System
  68. Caution: Customers Don't Always Ask for What They Want
  69. 5 Guideposts to Measure Your Brand Promise Against
  70. 3 Factors Impacting Credit Union Compensation Plans
  71. Don't Underestimate the Power of Financial Education
  72. Leveraging Social Media for Member Engagement
  73. Underestimate the Onboarding Process at Your Peril
  74. Finding the Best Platform for HR Technology
  75. The Role of HR and Hiring Managers in the Candidate Experience
  76. 3 Brand Promises Credit Unions Can Learn From
  77. Why You Should Invest in an Applicant Tracking System
  78. Don't Undervalue Your Brand Promise
  79. Content, Tools, and Channels to Capture Consumer Attention
  80. The Best Compliance Training with New Topics You Will Need
  81. Just How Distracted Are Consumers?
  82. Preparing a Transparency Communication Plan
  83. Preparing for Compensation Transparency

Related Trends

  1. Consumer Attitudes Toward Digital Advertising
  2. Content, Tools, and Channels to Capture Consumer Attention
  3. Just How Distracted Are Consumers?
  4. 3 Key Factors for Creating Good Content
  5. The Member Service Experience
  6. Selling Payments and Wealth Management Services
  7. Become a Tax Resource for Members
  8. Americansí Lack of Financial Literacy Is an Opportunity for Credit Unions
  9. Build Up Membership Through Supportive Savings Programs
  10. 7 Tax Changes Your Members Need to Know About
  11. The Importance of Creating Quality Content
  12. The Win-Win Results of Prize-Linked Savings for Credit Unions and Members
  13. Content Marketing: Well Worth the Effort
  14. Your Social Media Accounts Deserve Quality Content
  15. How Credit Unions Can Embrace Storytelling in Marketing
  16. How Credit Unions Can Formalize the Branding Process
  17. 4 Steps to Increased Social Media ROI
  18. What the C-Suite Wants out of Social Media
  19. Leveraging Social Media for Member Engagement
  20. Are Your Landing Pages up to Snuff?
  21. Don't Underestimate the Power of Financial Education
  22. If Your Site Isn't Mobile Optimized, You're Losing Out
  23. 3 Brand Promises Credit Unions Can Learn From
  24. How to Generate Content with Fewer Resources
  25. 5 Guideposts to Measure Your Brand Promise Against
  26. How Useful Are Member Personas for Credit Union Marketing Teams?
  27. A Simple Way to Unify Your Marketing Efforts
  28. Are You Missing Out on the Power of Video?
  29. The Dream Team for Successful Online Customer Interactions
  30. Don't Undervalue Your Brand Promise

Industry insights
to your inbox!

Subscribe