An alarming number of Americans have no savings to fall back on if they lost a job or faced a significant financial hurdle, according to a consumer finance survey by NeighborWorks America. 29 percent of Americans would be unable to repair a vehicle, pay medical bills, or offset the loss of a job. The people most impacted are low-income workers, minorities, and young adults.
This is where NeighborImpact’s HomeSource program steps in to help Central Oregon families. Through its financial coaching program, HomeSource provides opportunities for individuals and families to learn about credit and budgeting, money management skills, and the importance of saving for a rainy day.
“NeighborImpact’s goal is to help families build the necessary tools to avoid a major financial disaster,” says Lynne McConnell, NeighborImpact’s Associate Director of HomeSource and Assets. “None of us can predict when a crisis might hit, so it’s essential to be prepared.”
While low-income families are often hit hardest, even higher-income earners lack adequate savings. The survey found that 52 percent of families earning less than $40,000 a year have no savings, 24% of families earning between $40,000 and $60,000 lack savings, along with 15% of families making up to $100,000 per year, and 11% of families earning more than $100,000.
“While the data shows lower-income families are more at risk, this issue impacts all income levels. The great thing about NeighborImpact’s HomeSource program is that we help families financially succeed no matter what their income might be,” explained McConnell.
Helping individuals and families establish and sustain an emergency savings account is just one component of financial coaching, which includes group education classes and one-on-one coaching. HomeSource schedules classes throughot the tri-county area.
For more information on NeighborImpact’s HomeSource program, visit the website at http://www.neighborimpact.org/services/skills-for-success/ or call 541-323-6567. NeighborImpact is a chartered member of NeighborWorks America, a national program devoted to affordable housing and community development. For more details on the survey visit NeighborWorks website at: http://www.nw.org/network/newsroom/FinCapSurvey.asp
NeighborImpact is a "21 Cares for Kids" partner.