September 1, 2002
Northwest Florida Daily News
by Rebecca Cason, Daily News Business Editor

Are you saving as much as you should?

If you're like most Americans, you aren't.

Too many of us are in the habit of spending too much and saving too little, but a new coalition is hoping to reverse this trend in Okaloosa County.

A grass-roots movement called America Saves is taking root locally through a coalition of area businesses, educators and religious leaders.

Okaloosa Saves will be a community-based program to promote savings and wealth building among local residents.

The program is encouraging local banks and financial institutions to participate by offering no-fee savings accounts for Okaloosa Savers.

Elaine Courtney, an extension agent with the University of Florida Extension office in Crestview, said the program is sorely needed.

"Bankruptcies are at an all-time high, and there was an increase by 500 cases locally last year," said Courtney, who is helping build the local coalition.

In Okaloosa County, there are 523 arrests a month for worthless checks, she said.

"These are signs in our county that we need to get our message across," Courtney said.

Part financial education and part social marketing, Okaloosa Saves will enlist the help of local businesses, nonprofits, churches and schools to encourage people to save toward a specific goal.

The goal can be anything-- an emergency fund, home ownership, a vacation or retirement.

It's geared primarily to low- and moderate-income households, but all income levels have shown a steady decline in savings rates over the last several years, said Nancy Register, assistant director for the Consumer Federation of America.

Recent data show that even during the economic boom of the 1990s, people failed to build wealth. Now many Floridians may not have enough money to live securely through life and into old age.

"People at all income levels can and do save," Register said. "One of the biggest barriers is that people just don't think they can do it."

This is where Okaloosa Saves comes in.

The program will hold a series of motivational workshops emphasizing the importance of saving throughout the community. At the workshops, savers can sign up for free mentoring from wealth-building coaches who assist them in a personalized savings plan. From there, savers can open savings accounts or contribute to a number of financial products that will help them achieve their goal.

Organizers realize that teaching a nation of spenders to become a nation of savers will be a difficult task. "In our society, consumers are bombarded with opportunities to spend money," said George Barany of Cleveland Saves, the first localized version of America Saves.

In the two years since Cleveland Saves was launched, more than 2,200 savers have been enrolled. "Our goal is to enroll 10,000 people in the next three years, but affect the thinking of another 100,000 people," Barany said. The city-by-city movement ultimately hopes to encourage at least 10 percent of the U.S. population to become better savers.

A report by the Consumer Federation of America says that 25 percent of U.S. households are "wealth-poor," or have net assets less than $10,000.

"Wealth-poor Americans are only a layoff or emergency expenditure away from financial disaster," said Stephen Brobeck, CFA executive director. Okaloosa Saves is expected to enroll participants at the beginning of 2003.

For more information, call 689-5850.
* Business Editor Rebecca Cason can be reached at 863-1111, Ext. 439 or rebeccac@nwfdailynews.com

EASY WAYS TO SAVE

* Pay off high-cost debt. The best investment most borrowers can make is to pay off consumer debt with double-digit interest rates.

* Buy a home and pay off the mortgage before you retire. The largest asset of most middle income families is their home equity. Once those families have made their last mortgage payment, they have far lower housing expenses. They also have an asset that can be borrowed on in emergencies or converted to cash through the sale of the home.

* Participate in a work-related retirement program. Many employees turn down free money from their employer by not signing up for a work-related program such as a 401(k) plan. If they did participate, with a dollar-for-dollar match they would likely receive an annual yield of greater than 100 percent on their investment.

* Outside of work, save monthly through an automatic transfer from checking to savings. These savings will provide funds for emergencies, home purchase, school tuition or even retirement. Almost all banks will, on request, automatically transfer funds monthly from your checking account to a savings account, U.S. Savings Bond or stock mutual fund. What you don't see, you probably won't miss.