GETTING ON THE PATH TO SAVINGS
According to the Boston Federal Reserve Board, 40% of Americans don’t have $400 in the bank to cover an emergency. We want to change that.
United Way is working with other United Ways across the state of Connecticut to help low-wage earners get on the path to savings through a new program that encourages savings and provides free financial advice.
Called ALICE Saves, the program gives cash incentives for saving. ALICE Saves offers a $10 match for every $20 saved at the end of each month for six months. Participants can have $180 in the bank when they complete the savings program. It gets people into the savings habit and puts them on the path to greater financial stability.
ALICE Saves also provides free access to financial advice through Trusted Advisor, a technology enabled program that provides advice at the user’s convenience. The ALICE Saves program is completely secure and uses bank level security to protect the user’s account information.
HOW THE PROGRAM WORKS
- Future savers visit ALICE Saves then sign up for the program by providing the necessary contact information and link the program to an existing bank account. The program works with virtually all banks and is completely and totally secure.
- If they set aside $20 in the linked account by the end of the month, they will receive a $10 reward, to a maximum of $60 over 6 months. Savers can have $180 additional in their accounts by the end of the six-month period.
- Savers also get free financial advice through Trusted Advisor, over the phone or via Skype. One-on-one financial advice is provided in either English or Spanish. The counselors listen to your questions, ask about your lifestyle and your goals, and then they work with you to develop an action plan for improving your finances that is tailored to your unique situation.
- 319 across Connecticut got on the path to savings in 2017
- 60% of people who used this program reported that they were now regular savers, compared to only 15% before the program
- 77% said they were living within their means, compared with only 57% before the program
ALICE Saves has played a role in one woman's journey to financial independence from an abusive spouse