Program Aims to Help People Save Money

February 7, 2005 Monday
Marshfield News-Herald
Matt Ollwerther

Most Americans spend, rather than save, their money, said Gayle Rose Martinez, Clark County University of Wisconsin-Extension family living agent.

The America Saves program promotes saving, building wealth and paying off debt. The campaign's motto is "build wealth, not debt," she explained.

Savers get a free session with a financial counselor, a national newsletter and a minimal or no-fee savings account from participating financial institutions. The long-term program goal aims to make saving money a social norm along the same lines as buckling your seat belt, said Martinez.

A handful of people already have signed up, but Martinez said she expects the numbers will pick up in the next few months.

"Right now, we're answering a lot of questions," she said, adding the program  usually begins to grow more quickly when community meetings are scheduled, which is currently underway. "It's a behavioral change we're asking for, and it takes time."

Jennifer Kujawa, financial services specialist at the Neillsville branch of  Mid-Wisconsin Bank, agreed. "I think it's going to be a slow process," she said.

Word-of-mouth might prove more influential in attracting savers than literature and promotions in banks, she said.

While the growth might be incremental, both Martinez and Kujawa said even small savings are better than none.

"It's just a matter of even convincing people to put their couch change away," she said. Saving $5 each month is more substantial than people realize, she  added.

Even people with low or moderate incomes are able to save successfully with a small amount of community support, said Martinez, who added people with a savings plan are twice as likely to achieve their goal.

America Saves originated after research from the Consumer Federation of America found that people gave two reasons for not saving: They would be unsuccessful if they tried or they couldn't afford the cost, Martinez said.

The organization has 20,000 enrolled savers nationwide and over 1,000 groups offering help at local, state and national levels, according to the organization's Web site.