EARN, Citi Community Development and the Microsavings Solution
Saving money is an act of hope – and pragmatism– for tomorrow.
Saving money means planning for the best, while being prepared for the worst.
Too many families in America, however, when considering whether to buy a home or save for a child's college education, lack access to the right tools and support to start saving, build a financial buffer against the unexpected, and invest in the future.
According to the Federal Reserve Bank, approximately one of every two American households are considered "financially fragile," a status defined by being unable to cover an unexpected $400 expense without going into debt.
EARN -- a national nonprofit helping working families achieve prosperity through savings – is working to address that widespread challenge by connecting low-income families with savings solutions. Our clients are 90% people of color, 76% women, and earn on average $21,000 a year.
Over the past 15 years, our programs have helped more than 6,500 low-income families in California save $7 million of their own money. As we plan for the next 15 years, we have our sights set higher. EARN is pioneering a new approach to savings that leverages technology to provide a range of flexible solutions. Citi's support has been critical – and will continue to be — to achieve these results.
Over the course of our decade-long partnership, Citi's support for EARN and our savers has gone much deeper than traditional philanthropy and corporate volunteerism. Citi is the only major financial institution to provide critical infrastructure to savings initiatives that benefit low-income communities. In fact, if a nonprofit has an Individual Development Account (IDA) or Children's Savings Account (CSA) program, or one of a number of innovations in the microfinance space, it is likely powered by Citi.
For example, when EARN launched one of the first IDA programs in the country in 2002, Citi provided the account platform. When we started our first online savings program, called TripleBoost, Citi stepped in to create the infrastructure needed to support almost 3,000 accounts for children.
Even now, as EARN's plan for the future requires investing in technology that would open up the microsavings field to thousands of financial institutions, our partners at Citi continue to support us.
We are pioneering an online flexible savings program specifically designed for low-income families. EARN is also opening up its savings platform to other nonprofits, so that more organizations can integrate savings into their work. By connecting to thousands of financial institutions and savers in all 50 states, we believe our new strategy will revolutionize the way we support low-income communities in building resiliency, stability, and wealth.
Income alone will not solve the challenges facing low-income families working to escape poverty and attain lasting financial security. A savings habit, and the stability it brings, is equally important. Saving addresses financial insecurity by providing a way for families to weather short-term emergencies and stay on track to accumulate assets and achieve long-term goals like saving for a college education, retirement or a home. With the continued support of trusted partners like Citi, we will multiply the transformative power of saving across the United States.
To learn more about EARN's new savings platform, visit earn.org
About the Inclusive Cities Series
Citi Community Development collaborates with America's most prominent local public officials, civil rights leaders and community organizations to expand financial access and build more inclusive cities. Through these innovative collaborations, we harness Citi's expertise, products, services and investments to ensure all residents and families have access to opportunity. Inclusive Cities is a new guest blog series where Citi's leading community partners bring to life, through stories of leadership and ingenuity, how their partnership with Citi is driving real urban progress in communities around the U.S.