News

Peninsula Savers Build Wealth, Not Debt

Recent tough economic times have brought attention to the importance of managing wealth and reducing debt. In Virginia, a new program encourages Tidewater residents to get started by saving regularly and often.

With support from the Consumer Federation of America, Peninsula Saves provides Tidewater residents with financial information, tools, and access to products and services to help them build their personal and household savings. Virginia Cooperative Extension is one of more than 20 financial institutions, businesses, state and local agencies, and nonprofit organizations partnering for the America Saves campaign spinoff.

“We are a local campaign that serves everyone from New Kent County to Newport News, from Phoebus to Toano,” says Johanna Hahn, senior family and consumer sciences Extension agent in Newport News. Hahn is coordinating Extension’s role in the effort along with Doris Heath, unit coordinator and family and consumer sciences Extension agent in James City County.

So-called “Peninsula Savers” set a savings goal of as little as $10 each month. “Most of the participants joined the program to start an emergency fund, build up for a down payment on a house or car, pay off debts, save for a child’s college education, or fund a home-improvement project,” Hahn explains. Peninsula Saves does not include one-on-one financial counseling, but a wealth-building coach program lets financial professionals – such as certified financial planners, accountants, and Extension agents – offer participants tips on how to save.

During the campaign, 85 individuals signed up for Peninsula Saves, and 363 savings accounts were opened with deposits totaling $61,000.

“If Americans put 10 percent of their income in savings, the economy would be dramatically different,” says Hahn. “They would be better prepared for unexpected situations and fluctuating financial markets.”