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Health & Fitness

EESS HELPS LOCAL RESIDENTS SAVE: Consumer Credit Counseling Service of MD & DE and PNC Bank Team Up to Empower Local Residents

Less than half of us have enough emergency savings to make it through 3 months. Learn about how to save on a limited budget and the innovative client savings program CCCS has developed with PNC Bank.

Change is a constant in life, and this is certainly true when it comes to personal finance.  Each of us is just one step away from a major car repair, unexpected health care costs, or possible job loss.  It isn’t a question of “if.” It’s a question of “when.”  Emergencies happen.  And while they can’t be avoided, having emergency savings can take some of the sting out of these sudden expenses. However, according to a recent survey by the Corporation for Enterprise Development, less than half of us have enough savings or liquid assets to stay out of poverty for more than three months, and almost a third of us have no savings account at all. 

To address this problem, local nonprofit Consumer Credit Counseling Service of Maryland and Delaware and PNC Bank have joined together to create the Encouragement to Economic Self Sufficiency (EESS) initiative.  This innovative pilot program helps low-to-moderate income residents in Baltimore City and Baltimore County learn to save. Resource Development Manager Devon Hyde, who oversees the EESS effort for CCCS, says, “Emergency savings is something we all need.  It offers a safety net to fall back on for those ‘what if’ situations.  In good times and bad, it makes it possible to avoid getting into further debt or using up education or retirement funds to pay for a one-time unforeseen event.”

Many households, especially those with lower incomes, struggle to develop an emergency savings nest egg. Personal factors such as lack of financial knowledge, procrastination, and low self control, can make saving an uphill battle.  Outside factors, such as restrictive savings account services and public assistance asset limits, are also common barriers.  CCCS volunteer Dan Florea, who recruits EESS program participants, says, “No matter the cause, consumers without emergency savings are left with limited options. They may charge up their credit card or borrow from family or friends just to pay for the emergency. They may even accrue overdrafts, skip payments, liquidate their long-term savings, or fall prey to predatory practices such as payday loans, auto title loans, or pawnshops, just to stay afloat.”   

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These unhealthy emergency finance strategies can lead to dire results:  Families who lack emergency savings ultimately end up less financially secure.  They are less likely to recover from the next economic setback and have difficulty accumulating economic wealth.  They may even encounter financial hardships, such as losing their homes or struggling to put food on the table.  

CCCS and PNC Bank have set up the EESS program to give local residents a chance to jumpstart their emergency savings. Hyde says the partnership “draws upon the distinctive strengths and services both organizations offer.”  To enroll in EESS, clients must be low-to-moderate income residents living in Baltimore City or Baltimore County and participate in CCCS’s debt management plan (DMP).  To participate, they must enroll in a PNC savings account at one of its six participating Baltimore-area bank branches.  According to PNC Assistant Vice President Lourdes Montes-Greenan, “If you’re already living on a limited income, it can be a challenge to build up savings using a traditional account. The EESS savings account is truly unique.  It gives clients the chance to save a minimum of $10 a month without requiring them to keep a minimum balance or charging them a monthly fee.” 

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When clients enroll in EESS, the amount they choose to save each month is added to their regular CCCS DMP payment.  The agency then distributes the savings to their PNC savings account the same way it distributes their DMP payment to their creditors.  Florea explains, “This approach helps clients get into the habit of saving regularly.  CCCS’s counselors serve as financial coaches, showing them how to come up with the money they hope to save and helping them work through financial obstacles that may arise.  Clients are often excited once they see their savings start to grow.  They see that even a small contribution can add up over time.”

Montes-Greenan agrees that learning to save regularly is the key.  “People who have never saved before are sometimes discouraged when they hear that experts recommend we have three-to-six months of savings on hand.  But almost anyone can free up $10 a month simply by evaluating their budget and changing some spending habits.  Maybe it’s drinking tap water instead of buying bottled water or giving up that trip to Starbucks periodically before work.”

How do clients feel about EESS?  Client Michelle W. says saving has always been difficult for her “because I love to shop.  Being in the program has taught me to think in terms of ‘needs’ vs. ‘wants.’  Before when I entered a store, I might succumb to buying three pairs of shoes.  Now I just leave with the pair I need for work, and the money I saved goes into my account.”  

Homeowner Dorothy G. enrolled with CCCS after she lost a job she’d held for many years and later had to take work that paid less. “At the point I entered the program, I had used up my supplemental income and spent a portion of my 401-K to pay for repairs on my roof.  EESS gives me the chance to save more and spend less so I’ll be better prepared next time,” she says. “I constantly look for ways to cut costs and save more.  I monitor my gas and electric usage and bring food with me instead of eating out when I travel for work.  I’d like to be able to save enough for a six-month cushion in case I’m out of work or another emergency turns up.”

Hyde says the lessons these clients have learned connect directly with CCCS’s mission:  “Our goal is to help stabilize communities by creating hope and promoting economic self sufficiency.  When we offer clients an avenue to pay down their debt and build a rainy day fund, this makes it possible for them to increase their economic stability and gain lasting financial skills.” 

Montes-Greenan says that PNC’s partnership with CCCS is one where everybody wins.  “PNC takes community development seriously.  Partnering with reputable nonprofits like CCCS makes it possible for us to generate projects that transform people’s lives.”

To learn more about the EESS program, please call Devon Hyde at 410-747-2050.  To schedule an appointment with CCCS for free, confidential budget or credit counseling, call 1-800-642-2227.  To learn more about the agency’s services, visit www.cccs-inc.org

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