{"id":3120,"date":"2018-02-28T11:34:08","date_gmt":"2018-02-28T16:34:08","guid":{"rendered":"https:\/\/www.afcpe.org\/?p=3120"},"modified":"2019-04-23T15:44:08","modified_gmt":"2019-04-23T19:44:08","slug":"america-saves-week-bridging-the-savings-gap","status":"publish","type":"post","link":"https:\/\/www.afcpe.org\/news-and-publications\/blog\/america-saves-week-bridging-the-savings-gap\/","title":{"rendered":"America Saves Week: Bridging the Savings Gap"},"content":{"rendered":"\t\t
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With so many obstacles to saving, how do we help bridge the savings gap for individuals and families, helping to turn savings goals into successful realities and small steps into lasting financial well-being?<\/strong><\/p>

On Tuesday February 27,\u00a0@AFCPE hosted a Twitter Chat to discuss ways to overcome obstacles to successful savings and offer suggestions and tips on\u00a0#bridgingthegap<\/strong>. We had a great turnout with lots of information shared!<\/p>

Check out some of the tweets below. Unfortunately, there was\u00a0too much incredible information shared\u00a0to capture it all below, so if you\u00a0missed the chat or we missed your tweet, be sure to share your advice in the comments section. Let the discussion continue!\u00a0<\/p>

Q1. What are some of the barriers or gaps that stop people from meeting their savings goals?<\/strong><\/p>

A1: Life has a tendency to throw curve balls at us. Unpredictability is always a huge barrier that stands in the way of healthy savings. #bridgingthegap #ASW18 #MSW18
@PenFed<\/p>

A1. One of the biggest barriers to saving successfully is getting started. Open a savings account. Establish a habit of putting money in that account regularly – whether you do that manually or automate it. Start small to save big. #bridgingthegap
@AmericaSaves<\/p>

A1: Current expenses and spending habits often cloud savings goals. It’s a good idea to allocate savings first, then manage expenses #bridgingthegap #ASW18
@InviteEducation<\/p>

A1: Not having secure, affordable housing gets in the way of #savings! #bridgingthegap
@KateMielitz<\/p>

A1. Irregular work hours or freelance income that precludes the ability to easily automate regular savings deposits. #bridgingthegap
@moneytalk1<\/p>

A1: Another barrier: cultural issues such as pressure to turn savings over to family members when they have emergencies. #bridgingthegap
@moneytalk1<\/p>

A1: According to recent #JFCP research, lack of comfort w\/ financial institutions & unemployment were key barriers to #saving:\u00a0https:\/\/my.afcpe.org\/system\/journals\/Vol27Issue2Art7.pdf<\/a>\u00a0#research #bridgingthegap
@AFCPE<\/p>

A1. Savings is a key differentiator in financial wellbeing. People can face barriers in potentially multiple areas: in social & economic environment, knowledge & skills, personality & attitudes, decision making, available opportunities & behavior. #bridgingthegap #asw18 #msw18
@jerrybuchko<\/p>

Q2. How can someone who is living paycheck-to-paycheck begin to accumulate savings?<\/strong><\/p>

A2. Get rid of debt and set aside the money that was going toward credit cards and loans. #ASW18\u00a0 #bridgingthegap
@CreditDotOrg<\/p>

A2: Track spending & develop and monthly spend plan, having a plan is key it allows us to be proactive as oppose to reactive #bridgingthegap, #ASW18 #MSW18
@financialfavor<\/p>

A2. Start small! Even $1\/day can make a difference. Starting the behavior of saving is often more important than a high $ amount of savings. #ASW18 #bridgingthegap
@Claudus19<\/p>

A2. They can begin by assessing their situation to see what bills or services such as cable can be eliminated. Then take that money and deposit into a savings account. #bridgingthegap
@TThreadford<\/p>

A2. Start with a budget. Be clear and honest about your income, but especially about your spending. Once you have a realistic budget, you can find ways to adjust your habits to put your savings goals first. #bridgingthegap
@MilitarySaves<\/p>

A2: Commit to small dollar amounts for savings now. Long term, need to skill up for new career opportunities to increase income while staying budget disciplined. #bridgingthegap #ASW18
@InviteEducation<\/p>

A2. Tracking spending can help identify areas of an budget that can be tightened to find money to save, even if it’s very small amounts. #bridgingthegap #MSW18 #MFLN
@MFLNPF<\/p>

A2: For those truly living paycheck to paycheck looking at their expenses and cash flow is a vital first step, also reaching out to organizations that may provide incentives to save can help bridge the hurdle of starting. Debt reduction is also key. #bridgingthegap
@TheWisestPenny<\/p>

A2.\u00a0 A great way to begin savings is using payroll deduction in a 401k plan or IRA.\u00a0 Pay yourself first!\u00a0 #bridgingthegap
@kalamarides<\/p>

A2. Living check to check describes a generic condition but challenges can be very different depending on a person\u2019s circumstances. Someone in poverty working fulltime for sub-living wage that barely covers basic needs faces a different challenge 1\/2 #bridgingthegap #asw18 #msw18
@jerrybuchko<\/p>

Q3. The retirement savings landscape is changing. What are ways to accumulate long term savings without access to a traditional employer retirement plan?<\/strong><\/p>

A3. Even if your employer doesn\u2019t offer a retirement plan, you can still save for retirement – and get some tax benefits in the process – by putting money in an Individual Retirement Account (IRA). #bridgingthegap
@MilitarySaves<\/p>

A3: Investing in a Roth IRA can be a great source of tax-free income in retirement. #bridgingthegap #bridgingthegap
@AFCPE<\/p>

A3: There are traditional IRAs and Roth IRAs, as well as SEP-IRAs for self-employed individuals. This article breaks down the differences: http:\/\/bit.ly\/2C6vWhK\u00a0 #bridgingthegap #ASW18
@AmericaSaves<\/p>

A3. Save your money in a money market account, share certificate or IRA account. #bridgingthegap #ASW18
@AirForceFCU<\/p>

Q4. Similarly, what savings tips would you provide someone who has an irregular income?<\/strong><\/p>

A4. Even those without regular income have regular bills to pay that can be outlined in a budget. Consider your savings goal a line in your budget! Prioritize it and be sure to put what you can afford into savings each paycheck. #bridgingthegap
@MilitarySaves<\/p>

A4: A monthly spend plan is key. be conservative when planning income & save any additional income over that amount #bridgingthegap , #ASW18\u00a0 #MSW18 \u00a0
@financialfavor<\/p>

A4: Once your bank account reaches a certain limit, transfer the excess to savings (emergency and retirement). #bridgingthegap
@H_Benedict1<\/p>

A4: Irregular pay? A4: Set aside $$$ from \u201cpeak\u201d months 2 pay bills in \u201clean\u201d months; plan ahead 2 transfer $$$ as needed
@moneytalk1<\/p>

A4: There are digital tools available to help you adjust your budget on the fly and maximize savings month-to-month, but the real issue is adding skills to increase consistent income long term. Life is not a sprint, it’s a marathon, stay consistent. # bridgingthegap\u00a0 #ASW18 #MSW18
@InviteEducation<\/p>

A4: Set up separate bank accounts. From the primary account, make 3 transfers per month – 1 for bills & essentials, 1 for emergency savings, 1 for longterm\/essential #savings. # bridgingthegap
@AFCPE<\/p>

A4: Save at least part of lump sums & windfalls such as a tax refund, settlement, gifts, or prize money. #bridgingthegap
@moneytalk1<\/p>

A4. Automation can also be an irregular earner’s best friend. Automating debt can reduce interest, while automating savings can put away $$ for short or long-term goals. #bridgingthegap
@MilitarySaves<\/p>

Q5. How do we set our children up with early options to save to help them build sustainable wealth?<\/strong><\/p>

A5. Involve your kids in the family budgeting process and let them learn from experience. #ASW18 #bridgingthegap
@CreditDotOrg<\/p>

A5. A 529 college savings plan is one early way to set your child up for financial success. These accounts can be opened by parents or grandparents as early as birth and have both automation and tax-savings perks. #bridgingthegap
@MilitarySaves<\/p>

A5. I like to use the piggy bank with my grandchildren. We have a picture of what they are saving for and a graph that we fill in each time they reach a certain milestone. #bridgingthegap
@TThreadford<\/p>

A5: We believe you should talk to your kids about money early and often. Educating about financial wellness is a great way to set up healthy financial futures. #bridgingthegap #ASW18 #MSW18
@PenFed<\/p>

A5: Explain awesome power of compound interest to kids with this calculator: https:\/\/www.econedlink.org\/tool\/2\/\u00a0 #bridgingthegap
@moneytalk1<\/p>

A5: A great resource for kids books is @CFPB Money as You Grow book club. It’s about teaching “the building blocks of financial well-being – patience, planning, & problem-solving”:\u00a0https:\/\/t.co\/CxgOm8VB8V<\/a>\u00a0# bridgingthegap \u00a0
@AFCPE<\/p>

A5: Talk! It\u2019s never too early to start talking to your kids about why it\u2019s important to save. Make sure you model the behavior\u2014walk your talk. #ASW18 #bridgingthegap
@Claudus19<\/p>

A5: We also love programs like @oaklandpromise #BrilliantBaby model, which incentivizes #saving & provides #FinancialCoaching:\u00a0
http:\/\/oaklandpromise.org\/programs\/brilliantbaby\/<\/a>\u00a0@sagemoney #bridgingthegap<\/p>

@AFCPE<\/p>

A5: For young children, physically handling money, having a piggy bank, and making trips to the bank can help turn savings from an abstract to a concrete idea.\u00a0 A regular allowance builds the idea of regular savings #bridgingthegap
@bizzywhiz<\/p>

A5: It\u2019s early on that children also begin forming their understanding of what work, jobs, money, earning, savings, spending, borrowing, etc mean & how each of these relates to the others within the context of their lives. #bridgingthegap #asw18 #msw18
@jerrybuchko<\/p>

Q6. What savings advice do you have for families who are providing not only for children, but also for their aging parents?<\/strong><\/p>

A6. First and foremost, don’t stop saving for your own goals. It will always feel like there’ll be a better or more opportune time for saving, but the truth is that you’ll miss out on the benefits of saving early (#compoundinterest) by waiting. #bridgingthegap
@MilitarySaves<\/p>

A6. See if your parents qualify for any government benefits that may provide you with some financial relief. #bridgingthegap
@AirForceFCU<\/p>

A6: Have an, open & honest financial conversation w\/your parents early. Help them prepare for later years, so you can plan ahead for #bridgingthegap
@AFCPE<\/p>

A6.\u00a0 Consider the value of aging parents\u2019 home in their financial planning.\u00a0 May be their largest asset. #bridgingthegap
@kalamarides<\/p>

Q7. Why is a spending plan or budget important when building savings?<\/strong><\/p>

A7: A spending plan is a financial roadmap. Be sure 2 include savings 4 goals & emergencies as an expense. #bridgingthegap
@moneytalk1<\/p>

A7: A budget is the cornerstone of a good financial plan. It is the best way to manage your cash flow and avoid overspending. #bridgingthegap
@AFCPE<\/p>

A7. Budgets are critical piece of savings because the unexpected will happen.\u00a0 #FinancialWellness means not running out of money today (budget), tomorrow (insurance), and in the future (savings). #bridgingthegap
@kalamarides<\/p>

A7. A spending plan is your game plan for financial success. It helps keep you on track! #ASW18 #MSW18 # bridgingthegap
@FinanceLacey<\/p>

A7: How much time would you waste driving without Google Maps? Instead of guessing your way to savings, set a spending and budget plan to know when and how much to save and arrive on goals efficiently #bridgingthegap #ASW18 #MSW18
@InviteEducation<\/p>

A7. A budget is the recipe for making your delicious financial cake! \"\ud83c\udf82\" Without a recipe, you\u2019ll end up with an inedible disaster \"\ud83e\udd22\" By following the recipe, you know exactly how much you can afford to save while still meeting all your obligations. #ASW18 #bridgingthegap
@Claudus19<\/p>

A7: A spending\/budget plan can also be an important tool for reminding you about your priorities & savings goals. It\u2019s easy to forget who you are & what you want as just getting through a typical day draws the focus of your attention in other directions. #bridgingthegap #asw18 #msw18
@jerrybuchko<\/p>

Q8. How do we bridge the savings gap for people of color, closing the gap on wealth inequality?<\/strong><\/p>

A8 Financial Education programs in at risk communities are a must. Encouraging families and individuals to attend can be the hard part. #bridgingthegap #ASW18 #MSW18
@navicorePR<\/p>

A8: \u201cFinancial advice is subsidized for wealthier households, as cost of advisor is deductible. Only 1\/3 of families itemize so most can’t access that subsidy. What if we had a refundable credit for financial coaches?\u201d @womenswealthgap #bridgingthegap
@AFCPE<\/p>

A8: Education and meeting people where they are\u00a0 – #savings is not one size fits all. #bridgingthegap #ASW18 #MSW18
@H_Benedict1<\/p>

A8: Reputable & affordable financial institutions located in minority neighborhoods; Building trust through community involvement # bridgingthegap
@financialfavor<\/p>

A8. Thank you for asking this important question! Education and affordable access to it is, IMHO, key to building wealth and tearing down wealth inequality. Supporting access to HE is something we can all do in our communities using our fin knowledge. #ASW18 #bridgingthegap
@Claudus19<\/p>

A8: Educate yourself & advocate for change. Remember, successful advocacy starts w\/ understanding the situations of those we serve. #bridgingthegap #ASW18 #MSW18
@AFCPE<\/p>

A8: Some reading & resources I’ve found helpful & can share along these lines: #bridgingthegap #asw18 #msw18
@jerrybuchko<\/p>