Save Up helps low-income families to learn to better manage their resources so that they are able to purchase an asset, like their first home or a car to get to work. These asset purchases help them to build wealth and to lift their families into better circumstances.
What is the issue, problem, or challenge?
It is often said that there is "too much month at the end of a paycheck." Without financial literacy, low-income families don't know how to make the most of their money by making a budget and sticking to it. Save Up gives them the tools to learn to save then helps them to make saving a habit with an individual development account. Families eligible for the Earned Income Tax Credit and those who have transitioned out of traditional public housing are eligible to enroll in the Save Up program.
How will this project solve this problem?
The cycle of generational poverty can be broken with financial literacy. Savers participate in mandatory financial literacy classes and are coached in saving, as well as aided in the asset purchase process. With the right tools, low-income people can build wealth through savings. Our 2011 participant survey indicates that most participants continue to save monthly after exiting the program, with with 95% investing in retirement plans and 80% regularly contributing to savings accounts
Potential Long Term Impact
The entire community is lifted up when low-income families are lifted out of poverty. With the knowledge gained from Save Up, our program participants purchase homes, cars, and further education. Paying for social services treats symptoms for short-term benefit; investing in RISE teaches people to treat themselves for a lifetime. Save Up has helped over 500 people purchase more than 6 million dollars in assets. With your support, we can serve more of our community!
Total Funding Received to Date: $310
Remaining Goal to be Funded: $24,690
Total Funding Goal: $25,000