WASHINGTON D.C., September 30, 2016 — EARN announced today the launch of “Starter Savings,” a new mobile-first savings tool designed to kick-start a habit of savings and help low-income working Americans build an emergency savings fund. The announcement was made at CFED’s Assets Learning Conference, a bi-annual gathering of professionals dedicated to creating an opportunity economy. More information is available at earn.org/save.
Starter Savings is the first and only online savings platform that is specifically designed to incentivize small dollar, flexible savings for low-to-moderate income Americans. Now, Savers across the United States can start saving small with the EARN Starter platform and earn rewards for setting aside money in their own savings account.
EARN’s new platform is attacking a nationwide problem head on – widespread financial instability exacerbated by the lack of a savings cushion. “According to a Federal Reserve study, 47% of Americans cannot come up with $400 in the event of an emergency,” says EARN CEO Leigh Phillips. “Based on our 15 years of experience, we know that EARN’s new platform can create lasting behavioral change to reverse this trend and create greater financial stability for American families.”
Early results are positive – 86% of Savers who completed the pilot program reported a savings habit after program completion. The average deposit of pilot users was $50, more than twice the minimum amount required to earn rewards. Of participants, 99% said they would recommend the program to friends and family.
“EARN is responding to one of the most critical financial challenges facing America’s families today – how to help working families save. Their savings platform will build the financial resilience of American families and reduce the impacts of growing income volatility,” commented Ida Rademacher, Executive Director of the Aspen Financial Security Program and a member of the EARN Board of Directors.
EARN emerged as the only nonprofit among nine companies selected as winners for the 2016 Financial Solutions Lab, an award given by the Center for Financial Service Innovation to the most promising financial technology approaches that improve the financial lives of Americans.
“Americans today are far too vulnerable to financial shocks and income volatility,” says Jennifer Tescher, founder and CEO of the Center for Financial Services Innovation (CFSI). “EARN’s Starter Savings program creatively leverages technology to help incentivize low- to moderate-income families across the U.S. to establish a savings habit, which is a cornerstone of financial health.”
EARN’s program is available in all 50 states and can be accessed online at save.earn.org.
One of the first users, Bradley Tanzman, says, “No dollar amount is too small to save. The money adds up so quickly. After you have your bills paid, take as much as you can and tuck it away. Don’t leave it in your checking – put it in your savings.” EARN, he says, is like “training wheels for your savings account.”
EARN, the nation’s leading provider of microsavings, is an award-winning nonprofit. Since 2001, EARN has helped thousands of low-wage families save for a better future through innovative savings products. EARN’s ultimate vision is that millions of well-informed, low-wage American families will achieve financial success through proven strategies, fair public policy, and their own hard work.