Savings Strategies and Techniques for Low-to-Moderate Income Households Andrea Levere Seventh Annual Financial Literacy Leadership Conference, September 29, 2014

CFED (Corporation for Enterprise Development) empowers individuals and families to build and preserve assets by advancing policies and strategies that help them go to college, buy a home, start a business, and save for now and for the future. Identify Good Ideas: CFED’s research finds ideas with potential for making the economy work for everyone, particularly those on the margins. Develop partnerships: CFED works in partnership with diverse organizations across the country to promote lasting change. Bring Them to Scale: CFED brings together community practice, public policy and private markets to achieve the greatest economic impact. We combine the vision of a think tank with real-world experience to : About CFED

Liquid Asset Poor lack savings to cover basic expenses for three months if job loss, a medical emergency, or other crisis leads to a loss of income $5,887 for a family of four Persistent financial insecurity Source: 2014 Assets & Opportunity Scorecard, CFED (

High-cost loans are the only option for many with subprime credit scores, which can create a cycle of debt No slack: liquid asset poor borrow to cover unexpected costs Source: 2014 Assets & Opportunity Scorecard, CFED (

8.2% of households are unbanked No checking or savings account 20.1% of households are underbanked Have an account, but still rely on alternative financial services 30.8% of households do not have a savings account Unbanked and Underbanked Households Source: 2014 Assets & Opportunity Scorecard, CFED (

Boost Savings Emergency savings, IDAs, prize-linked savings Children’s savings accounts Retirement savings (e.g. Obama’s myRA proposal) Increase Consumer Protections New “cop on the beat” with the Consumer Financial Protection Bureau Curb predatory payday and small dollar lending Savings and Asset-building Programs and Policies that Work

Andrea Levere, President, CFED