Savings Challenge

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Savings Challenge

• August 20, 2008
• Danielle Chatfield-Beres
• MidState Educators CU

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Why a Savings Challenge?

• Results of ethnographic research shows
• Members have little expertise about money
  management
• Play mind games, ignore the truth
• Little to do with income, education, age

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What is a Savings Challenge?

• A contest where several members compete to see
  who can most closely meet their individual
  financial goals over a set time frame
• Weight Watchers for your wallet

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Savings Challenge - How it works

• Piloted through GECU in El Paso, TX
• Families compete in year-long savings challenge
• CU coaches work with families to meet goals
• Winners receive cash prizes
• Ideally, progress documented through media

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Savings Challenge - Why it Works

• People love reality shows
• Community - Im not alone
• Courage - If he can do it, I can do it.

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How it works The nitty gritty
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Application Process

• Pre-announce in member newsletter
• Media press release
• Teaser posters/flyers
• E-newsletters
• Application document

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Selection process

• Application review
• Finalist interviews
• Announce to membership
• Thank you letters to all applicants

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Set goals and objectives

• Equal stretch for all
• Measure progress
• Commit to coaching

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Select/Announce Winners

• Final choice made by independent third party
• Based on how closely attained savings
  accumulation and debt reduction goals

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Marketing Variations and Scale-ability

• Print media
• PSAs
• SEG newsletters
• Web site/homebanking
• Podcasting
• Traditional CU newsletter

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Results to Date

• 10 credit unions doing Savings Challenges around
  US
• Budgets and member communication mechanisms vary
• Pre-existing programs to learn from/tweak

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Helping Every Member
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How do we reach more members?

• Part of the buzz around reality TV is audience
  participation
• How do we extend the Savings Challenge to every
  member?
• How can I play along at home?

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Playing Along At Home

• Most robust program Educators CU in Racine, WI
• Members set a goal to obtain over same time
  period as the Savings Challenge
• Obtain a credit report
• Open maintain a VIP Savings Account
• Keep a spending plan
• Attend 3 in-person financial education workshops
• Take 3 online courses from Balance
• Online participants who achieve those goals are
  entered into a drawing for 1,000 750 500 or
  250

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Playing Along At Home

• Other variations dont have as strong a call to
  action
• www.stressfreewallet.com
• http//www.cacufinancialmakeover.com/
• https//aplusfcu.org/2008/4/24/savings-challenge-0
  8
• http//www.gecu-ep.org/home/new.GECUSavingsChallen
  ge08
• http//www.connexcu.org/home/abo.abo_tip

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Potential

• More financially secure members
• Vocal member advocates
• Significant positive press
• Word-of-mouth advertising
• Positive stories to share with legislators

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Chapter Considerations

• Is it an appropriate/beneficial Chapter activity?
• What will the goals be? (Duration of Challenge,
  number of families, etc.)
• What are the available resources? (Both
  financial and human)
• Can/should it be up and running by 1/1/09?

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Contact Information

• Danielle Chatfield-Beres
• Community Affairs Director
• MidState Educators Credit Union
• 614-340-1504 (direct)
• dcberes_at_educu.org