Big Changes at EARN: Part One

When things at work are going fairly smoothly, it’s easy to become complacent and keep doing your job the same way forever. But not at EARN. We’re always looking for ways to improve the way we impact the world and serve our community. We currently have some exciting developments in the works.

EARN’s core program is our Individual Development Account (IDA), where low-wage-earning participants save a little each month to improve their family’s future. They receive a match from EARN ($2 for every $1 they save, with a cap of $4,000 in match money per person) to motivate them.

We have been running this program successfully for well near a decade. But last year, as part of EARN’s continual quest for excellence, we asked ourselves, “What could we improve?”

Well, in response to Savers’ needs, and in alignment with our core value of scale and our research on financial self-efficacy, our team created a thoughtful list of improvements to test. We’ll be sharing these with you over the next few months, starting today.

Our first big change? We’re smoothing the way for Savers to get started saving sooner in our program by condensing our workshop requirements.

We used to require that applicants attend 8 hours of workshops before they could open an account. Participants had to arrive to our offices at 6:30pm and stay until 9pm on three weekday evenings. While many said the classes were life-changing, others (often the ones we wanted to impact most – single mothers who work a full-time job, go to school on the side to further their skills, and then rush home to take care of their kids) simply could not attend the full 8-hour series (or it would take them several months to complete the series and open their IDA account). Life got in the way: the baby got sick, the babysitter didn’t show up, the participant got called in to work overtime at their job, etc.

Those people used to fall through the cracks, never opening an IDA account and never benefiting from the cornerstone of the IDA program: the experience of saving.

This year, we decided to make one of the workshops optional. Participants still have to participate in two of the three workshops. They get to choose which evening to skip. And what have we found? Some applicants still attend all three workshops. Others choose just two. But everyone has shifted from viewing the workshops as a requirement to valuing them as an opportunity. No matter how tired they are when they stumble into our classroom after a long day at work, future EARN Savers are more engaged at the workshops than ever before. And everyone is able to open an IDA account successfully and benefit from the fundamental experience of saving.

Giving people a choice is a powerful mechanism. Adults who are given the choice of attending two of three workshops feel that they are in control, that they are attending a class because they want to be there. We’ll continue testing this change in our IDA program and keep you posted on what we learn. But so far, we’ve been inspired by the positive response from our Savers… and couldn’t resist sharing it with you!

Until next time,

The EARN Financial Services Team

Photo credit: smemon87