A follow up on my America Saves post

I was speaking to some people at Vancity about the issue of serving the underbanked and underserved, both of which are areas where we focus strongly. Two interesting things came back.

1> Someone in our Sustainability division (who shall remain nameless) came back with this nugget:

Money is like sex, you can have a lot of it or none of it and still have an unhealthy relationship to it.

2> Catherine Ludgate in our Community Business Banking division told me this story:

I was at a conference last week with a woman from Micro Business USA, and she was talking about the different mindsets of folks along the income spectrum. In her 30+ years of doing microlending and setting up savings programs, she said she has learned that poor and low income folk generally think of what they earn only in terms of their hourly pay (and certainly not about savings). An income cut above, the lower middle class earners think about their weekly earnings. Middle class earners think in terms of their monthly income, and upper middle class earners think in terms of annual income. The truly wealthy (however that is defined) think ahead in terms of three to five to ten year investments they will make.

Her argument was that changing how folks identified their value (hourly to weekly to monthly to annually to forward looking) is the first step in changing other behaviours, like the ability to save. And that change in thinking can lead to movement out of an income group, as the woman in the case study in the NY Times article moved.

I thought those were two good and valuable insights.

My original post is here.

ChangeEverything.ca is a Webby Award Official Honoree

After a lovely four day weekend, I arrived back at my desk at work this morning to find out that ChangeEverything.ca had won the status of Official Honoree at this year’s Webby Awards.

From their site:

Congratulations on being selected as an Official Honoree

Your submission has been selected as an Official Honoree of The 11th Annual Webby Awards. As a result of the exceptional quality of submissions this year, the Academy has chosen to recognize work exhibiting remarkable achievement that was not selected as a Nominee. Out of more than 8,000 entries submitted to the 11th Annual Webby Awards, less than 15% are deemed Official Honorees.

After years of producing web sites, this is my first Webby. Needless to say, I’m extremely excited. And just in time for my Net.Finance presentation next week!

Thanks and cheers to Kate Dugas and the team at Social Signal for making this happen.

America Saves

Interesting article in the NYTimes: Can Poor People Be Taught to Save?

Why can’t poor people save money? Part of that psychological barrier… was social pressure to not save; the minute people got a little surplus, friends and family would start asking for loans. There were other obstacles too. People in both communities feared losing welfare benefits if they accumulated cash. Many families didn’t even define savings monetarily; they talked about the things they would sell in desperation – baseball-card collections, heirlooms or other low-value assets.

Enter AmericaSaves.org. What is America Saves?

America Saves is a nationwide campaign in which a broad coalition of nonprofit, corporate, and government groups helps individuals and families save and build wealth. Through information, advice, and encouragement, we assist those who wish to pay down debt, build an emergency fund, save for a home, save for an education, or save for retirement.

It’s a social network changing the peer pressure in poor communities from spending and lending to saving. According to the article, “about nine million households have effectively no financial assets – nothing to fall back on for emergencies or retirement.”

Banks help out by joining the program and creating accounts that charge no fees and have no minimum balance requirements. Amazing.

Something credit unions should get involved with. Creating wealth and assets for those with none. Banking for the under-banked and under-served. Hey, isn’t that already our mandate?

PS: Thanks for the link, Rob