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NEWS RELEASE

Survey of Clevelanders reveals savings gap in lower-income households—Cleveland Saves campaign launched to close gap

Cleveland, Ohio, March 6, 2001—The longtime concerns of dozens of Greater Cleveland leaders and organization about a "savings gap" in many low-and moderate-income households has been confirmed by a recent survey of area residents and a recent report on U.S. household wealth. To close this gap, more than 100 Cleveland-area nonprofit, for-profit, and public groups will launch a social marketing Cleveland Saves campaign, planned over the past 18 months, on Tuesday morning, March 6 at the Catholic Diocese.
A February 2001 survey by TDM Research, a national survey firm, of 500 representative Cuyahoga County households reveals a striking difference between the importance that lower-income residents place on "building personal savings" and their current saving practices. For households with incomes under $25,000, 66% consider saving "very important" but only 41% do so. Even those who are saving are not saving enough. A report (based on Federal Reserve data) related late last month by the Consumer Federation of America revealed that the typical American household has net financial assets, including retirement accounts, of only $9,850. And, between 1995 and 1998, most low-and moderate-income households actually lost wealth.
The main goal of Cleveland save—the first local campaign of a national America Saves initiative that was announced on February 22—is to close the gap. In the coming year, the local campaign will seek to enroll 2,500 Cleveland Savers and move another 25,000 area residents farther down the path to saving and building wealth. Over time, it will attempt to enroll more than 10,000 Clevelanders and positively influence the savings behavior of more than 100,000 residents, as measured by annual Cleveland area surveys.
The only qualification for becoming a Cleveland is setting a financial goal—e.g., emergency fund, homeownership, education, retirement, even debt repayment—and developing and carrying out a simple plan to reach this goal. The plan must include a dollar amount to be saved monthly, a specific saving account a method of making monthly deposits (preferably, automatic) and a time period. Cleveland Savers will qualify not only for many free services, but also for a free America Saves calculator and for participation in a free semi-annual raffle of U.S. Savings bonds and other savings products contributed by participating financial institutions.
The campaign will feature: The campaign is being funded, locally, by The Cleveland Foundation and the Gund Foundation. It is being supported, nationally, by The Ford Foundation, the National Endowment for Financial Education, and the U.S. Department of Labor (which is providing free calculators to Cleveland Savers and supporting employer outreach).

Cleveland Savers Represents First America Saves Initiative
Cleveland Saves represents the first local initiative of America Saves, a national social marketing program to encourage and assist low- and moderate-income Americans to save and build wealth more effectively. This national campaign is based on more than three years of savings research and on 18 months of program development in Cleveland. The research includes a broad-based review of the scholarly literature on saving, an anthropological study of low-income household saving, four Cleveland-area focus groups, and a national survey of saving messages, programs, and sponsors (released on February 22).
Research findings include:

The Consumer Federation of America (CFA), a Washington-based nonprofit association of some 270 pro-consumer groups, undertook much of this research with generous support from The Ford Foundation. (CFA's Chairman is retired Senator Howard Metzenbaum, and its Executive Director and CEO is Stephen Brobeck, who taught and did consumer work in Cleveland in the 1970s.)
In the summer of 1999, CFA and The Ford Foundation, which had funded economic development projects in Cleveland, decided to approach Cleveland leaders about developing a Cleveland Saves demonstration project. In November 1999, Consumer Credit Counseling Service COO Jay Seaton, who had worked with Brobeck in the 1970s, and WECO Executive Director George Barany brought together leaders for some 100 Cleveland-area financial institutions, employers, unions, religious groups, social agencies, community groups, and educational institutions to begin planning the Cleveland Saves campaign.
Throughout 2000, the groups developed and tested elements of the campaign. As well as setting campaign goals, the groups decided that motivational workshops to convince most people they could save, and follow-up one-on-one in-person planning consultations, were critical elements of the program. During the summer, 700 people from 18 participating organizations attended workshops developed and taught by leaders of Cleveland Saves. And, some 200 of these workshop attendees received individual planning assistant from Wealth-Building Coaches—CCCS credit counselors who had received special training.
When the test revealed that some participants needed relatively sophisticated advice about retirement and investments, more than 30 area financial planners agreed to advise Cleveland Savers, for free, over the phone. Also, the campaign decided to organize retirement and investment seminars.
When the test revealed, additionally, that many workshops participants had not signed up for employers retirement programs, the campaign created a specific motivational workshop for employees who have access to 401(k) and other work-related retirement programs.
Participant desire for support and encouragement led the campaign to plan and test savings clubs, called Wealth-Builders. Members who have access to experts provided by the campaign meet monthly to share information and seek advice. Ohio Savings and Starting Point are the first two sites for savings clubs.
Throughout the year, Cleveland Saves leaders talked about the importance of reaching your. Recently, they have organized pilot projects in an elementary school, a middle school, and an upper school—each assisted by a financial institution. Students in participating classes will have the opportunity to sign up as Cleveland Savers after hearing a motivational presentation and follow-up instruction. Three schools currently participating in the program are Village Angela St. Joseph High School, Holy Name Middle School, and Miles Standish Elementary School.

Survey Profiles Savings Interests of Greater Clevelanders
As well as revealing a savings gap between the desire of lower-income residents to save and their actual saving behavior, the TDM Research survey indicated the following:

Cleveland Saves Services Available for Free to Cleveland-area Residents
Anyone desiring more information about Cleveland Saves should call the Cleveland Saves Moneyline (216) 781-8090. Or they can fax (216) 781-8554 or write to Cleveland Saves, 1228 Euclid Avenue #390, Cleveland OH 44115 requesting this information
As well as information, those contacting Cleveland Saves can request: Other services—including an in-person planning consultation with a Coach, a phone consultation with a financial planner, and a retirement or investment seminar—are available only to those who have spoken with a Coach or attend a workshop.
Cleveland Saves is offering its services to a broad array of institutions. Both COSE and the Employers Resource Council, for example, are urging their employees, members, congregants, and members respectively. Organizations should contact Aletha Adams at (216) 781-8624 ext. 222. [an error occurred while processing this directive]