To Help Someone Save, We Need To Understand Their Full Financial Picture

Saving isn’t done in isolation. If it was, EARN’s mission would be much simpler. In reality, we are all confronted with financial challenges on a daily basis that push saving down the priority queue. To succeed in keeping saving at the top of the list, we need to better understand those challenges and connect our Savers to resources.

This begins with understanding where EARN’s Savers are in their financial lives beyond just short-term savings.

EARN integrated The Center for Financial Services Innovations’ (CFSI) Financial Health Score into the questions we ask our Savers. We also established a baseline financial health score for the SaverLife community by surveying a representative sample of existing Savers. The financial health score is a high-level overview of someone’s complete financial life. It evaluates a person’s ability to manage shocks, spending habits, planning and budgeting habits, and, of course, savings for both short-term and long-term needs.

Measuring financial health is the first step towards the creation of new tools, partnerships, and strategies that will pave clearer pathways towards regular savings. Check out our latest Big Data on Small Savings Brief, to see the results of our first foray into financial health measurement.

As EARN’s Director of Research, Tim is responsible for measuring the impact of SaverLife, testing new ways to encourage saving, and delivering insights that advance knowledge and tactics around financial inclusion and financial health.