No not Extra-Sensory Perception, I’m talking about the Economic Stimulus Payments.
Beginning in May, the IRS will send Economic Stimulus Payment checks to over 130 million households. Intended to spur a slowing economy, these payments represent many millions of dollars flowing into our communities. Just imagine what you could do with that money! How about doing something really novel and taking that payment and saving all or part of it for a rainy day?
It’s not like saving is unheard of, or that people don’t also get the message to save. It’s more that when surrounded by many more messages to “buy this new thing,” or “upgrade to this latest thing,” it’s harder to hear the call to save. And those messages to spend and buy are mostly winning. Recent survey results released by America Saves and the American Savings Educational Council (ASEC) found that only 53 percent of Americans have adequate savings, with just 28 percent saving the recommended 10 percent of their annual income.
It’s not just a message of cutting out the frills and luxuries, either. Surveys of taxpayers who file at the DC Earned Income Tax Credit (DC EITC) Campaign’s free tax sites have shown that many of them use their refunds for everyday expenses, including paying bills. If your income isn’t very high to start with, it’s easy to see why saving can be more difficult. At CAAB, however, we see every day that anyone can save.
National research and our own experience with our matched savings program participants like Christine Walker has shown that even people with low incomes can put money away now as a down payment on a brighter future.
To help get this message out and to provide motivation, information, and resources to help people take positive financial action, DC Saves was started a year ago this month (Financial Literacy Month, a fitting birthday!) to help Washingtonians reduce debt and increase savings.
This Saturday, April 5, we’ll host our First Anniversary Financial Literacy Fair at THEARC in Ward 8. In addition to useful information and access to savings products and resources, we’ll also provide free tax preparation services, financial education seminars, credit reports and counseling, and mini-sessions with Certified Financial Planners. It’s free to the public and we hope you’ll join us to learn how you, too, can take that first (or second, or third, etc.) step toward reaching your financial goal.
And what about that ESP?
To help more people claim and keep the economic stimulus payment and any other tax benefits they may be owed, the DC EITC Campaign and Community Tax Aid are hosting Super Stimulus Filing Days alongside our regular tax clinics. Community organizations can help their clients access these services by spreading the word about the programs, or sending their own staff to learn how to complete the necessary tax forms to help their clients receive their economic stimulus payments at one of our training sessions.
And if any of those clients want help to make a commitment to saving, tell them about the Fair on April 5. It’s a free, fun way to share the message that “Anyone can save!”
Donna Ortega is director of development and communications at Capital Area Asset Builders, a Stepping Stones Grantee Partner of The Women’s Foundation. The Women’s Foundation is a sponsor of the April 5 Financial Literacy Fair.
