Case Staff Advisory Council

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Cleveland Saves Fact Sheet

The Need

During a period when considerable wealth have been built through stock market growth, most lower and middle income families remain relatively asset-poor. Recent research using U.S. Census data reveals that the typical American household holds only $1,000 in net financial assets and $35,000 in total net assets (including home equity). Low and moderate-income families often have consumer debts exceeding all assets. Those moving from welfare to work have no or negative assets that impact their ability to move from government assistance to financial independence. For the 43% of households with incomes under $25,000, net assets barely exceed $100.

This lack of wealth adversely affects communities as well as households. Financial problems at home reduce productivity at work. Also, those without a material stake in society are less likely than wealth builders to take the responsibility of helping maintain and improve the community. Of course, for households lack of wealth can have dire consequences including the inability to handle financial emergencies, afford a home, pay for one's own education or that of one's children, and support oneself during retirement.

The Facts
Cleveland is the development center for a national initiative to promote savings in the University States titled AMERICA SAVES. Two Cleveland organizations WECO and Consumer Credit Counseling Services along with a national partner Consumer federation of America are organizing the effort now involving more than 100 organizations: financial institutions, community groups, employers, religious institutions, schools, government agencies, credit counselors, and many others.
Cleveland Saves assists low and middle income households to build wealth. This high-visibility, community-based campaign was launched on March 6, 2001. This initiative, funded by the Ford Foundation and other national groups, is the national pilot project for similar campaigns in other cities.
It is a campaign to provide financial planning, education, structural support and appropriate products targets primarily to low, moderate and middle income people for savings and investment to create wealth. The project is creating a community infrastructure supported by a social marketing campaign to foster behavioral change towards money in order to increase savings towards investment for a more secure future. These investments include homeownership, education, retirement, business and peace of mind.
The goal is to directly help 10,000 people over a 3-5 year period increase their standard of living and to affect the thinking of more than 100,000 people. Most people think they can't save or invest—this multi-faceted effort will create opportunities people haven't had before.
The strategy is to identify Cleveland area residents, employees of coporations, members of religious congregations, students, and members of organizations who will enroll in the campaign and participate in motivational and information workshops, financial education programs, financial planning and debt reduction and save and invest through quality financial products being provided by area banks, credit unions and the US Treasury.
Cleveland was chosen because of its successful community development initiatives and two organizations that have begun wealth-building initiatives: WECO's IDA program to support low and moderate income individuals in acquiring a hard asset that appreciates: home, education or business; and the Consumer Credit Counseling Service of Northeastern Ohio's long successful history in debt management and new wealth-building workshops.
This project provides opportunities for companies, social service and community organizations, unions, religious institutions and schools to support their constituents through recruitment, and access to education, information and beneficial financial products. Thus allowing people to realize previously unattainable ambitions to improve their lives.
Eighteen test sites involved more than 500 people this past summer to test and evaluate all of the program components. [an error occurred while processing this directive]