Is Financial Wellness
the Key to Deposits?
Discover the link between financial wellness education and consumer relationships that could lead to deposits.
Both consumers and financial institutions are feeling the pinch. People are borrowing more, lessening reserves. The rate environment is making deposits increasingly expensive for banks and credit unions. When you, as a credit union or bank leader, consider business solutions, now is also one of your best opportunities to help your communities. The situation demands consideration for your members, account holders, and future customers. Now is the time to educate them. Financial literacy is the catalyst to help people make the rightest decisions with their money and set financial institutions up as the rightest resources.
Nowhere is that clearer than in a bold look at people’s savings behaviors and attitudes. Only one-third of American adults say they are putting money away for retirement, according to the Plinqit State of Savings Report. The report uncovers new insights into the savings habits of consumers based on a Harris Poll survey of more than 2,000 U.S. adults.
Americans are saving less for retirement than they have in past years, and inflation could be making it even harder for them to catch up. Plinqit’s State of Savings Report found that only 35 percent of the consumers surveyed, across all age groups, are actively saving for retirement. However, when segmented by age, retirement saving is the top category for consumers ages 55 to 64, with 49 percent saving for retirement, which may indicate that this group realizes they need to make up for lost time in order to retire comfortably.
“As inflation persists, Americans across demographics have been forced to make tough decisions about their savings priorities, including retirement,” said Kathleen Craig, founder and CEO of Plinqit. “Younger consumers are more likely to prioritize paying off debt or saving for a major purchase over saving for retirement. It makes sense; they probably feel they still have time to catch up. However, failure to prioritize retirement savings early can have a long-term impact.”
The good news is that community financial institutions are perfectly positioned to help consumers establish strong savings habits and create a positive financial future, regardless of their age, income or savings priorities, Craig says. With the right tools and resources from their financial institution, consumers can make meaningful progress toward their goals, including saving for retirement.
Understanding that saving is the first step on the journey to sustained financial wellness, what micro-actions could you take today to help? What resources could you provide? You’ll lay a path for fiscal health for your community and your institution. For more data insights on the attitudinal and behavioral study of consumers’ saving habits, request the white paper.