Savings enable consumers to withstand unexpected expenses or income disruptions, in addition to also funding large expenditures, such as the purchase of a home or college education. Research indicates that people who save have better relationships with family and neighbors and increased community involvement.
Here are several other savings-related resources for financial institutions, community-based organizations, and others.
FDIC Educational Resources
The award-winning FDIC Money Smart financial education program includes the Pay Yourself First module that specifically addresses saving. Pay Yourself First provides information on the importance of saving, tips on saving money, and options available to reach savings goals. Money Smart is available in an instructor-led version for adults, an instructor-led version for young adults, in an mp3 podcast (audio) format, and in a self-paced online version.
FDIC Consumer News is a quarterly publication that provides practical financial tips and information. Practically every issue includes information on how people can save more money and make sure all their deposits are fully protected. For example:
- The Fall 2012 Special Edition for Young Adults and Teens offers a collection of articles for young adults and parents on topics including saving for goals such as higher education.
- The article It's Amazing: How a Small Savings Account Can Get Big Over Time explains how saving even small amounts of money can result in a substantial sum over time.
- One way to save is through certificates of deposit--learn more in the article Shopping for a CD: Be Informed, Be Safe.
- Happy Returns: Tips for Saving Money at Tax Time offers strategies to save money during tax time. Learn more about saving for retirement in an article outlining six basic strategies for retirement planning and the Making Sense of the Alphabet Soup of Retirement Accounts article.
Selected External Resources
- The America Saves program (www.americasaves.org) encourages all Americans to save money, reduce debt and build wealth. You can visit this website to make a savings commitment and learn additional strategies to save. Consider making savings automatic through regular contributions (investments) into a workplace retirement plan and establishing regular transfers into a savings account.
- America Saves Week is an annual opportunity for organizations to encourage and assist individuals in assessing their savings progress and taking action to advance this progress. (www.americasavesweek.org)
- MyMoney.gov is the federal government's one-stop website that provides financial education resources from more than 20 federal agencies. The Savings & Investing page provides a comprehensive catalog of resources from federal agencies on saving and investing.
- The Department of Labor (www.dol.gov) site provides information for owners of small business on various retirement plan options.
Building Assets, Building Relationships: Bank Strategies for Encouraging Lower-Income Households to Save
Not surprisingly, low- and moderate-income (LMI) households have the most difficulty saving. This FDIC Quarterly article explains the challenges LMI households face in building assets and examines the incentives banks have for encouraging these customers to save. The article also describes some strategies banks have used to build profitable relationships that also benefit lower-income consumers.
Individual Development Accounts and Banks: A Solid "Match"
A particular type of savings account, the Individual Development Account (IDA), is a relatively low risk way for banks to introduce American households who do not currently use the banking system to banking services and products that are offered. This FDIC Quarterly article explains how IDAs operate, describes banks' experience with IDAs, and points bankers to sources of information about these programs.
- Press Release: FDIC Encourages American Consumers to Get in the Habit of Automatic Saving
- Press Release: FDIC Calls Upon Consumers to Save and Build Wealth
- Press Release: FDIC Encourages Taxpayers to Take Advantage of IRS Programs and Save More of Their Refunds
- Letter encouraging financial institutions to promote automatic savings.
- Letter alerting financial institutions to the opportunity to be involved with Volunteer Income Tax Assistance (VITA) coalitions before the start of tax season, including to help facilitate ways to encourage taxpayers to save a portion of their tax refund.
- Access handouts and presentations from the FDIC Advisory Committee on Economic Inclusion meetings. Meeting topics have included prize-linked savings and asset-building opportunities for individuals and banks.
- View a list of FDIC Events in support of the 2013 America Saves Week (February 25 - March 2, 2013)
Speeches by Senior FDIC Executives
- Watch FDIC Chairman Sheila Bair discuss the importance of savings and of building wealth. (www.youtube.com)
- FDIC Chairman Sheila Bair's op-ed, Your Savings - Good for You, Your Family, and Your Peace of Mind [Spanish]
- Remarks by FDIC Chairman Sheila Bair on March 2, 2007 on ways to potentially further promote personal savings on a national level.
- Remarks by FDIC Chairman Sheila Bair on October 1, 2007 before the National Community Tax Coalition Biennial Conference.
FDIC Technical Assistance
FDIC leads or otherwise participates in numerous local saving and asset-building initiatives, including through the Alliance for Economic Inclusion (AEI). For further details, please contact your local Community Affairs Office.