CAAB Has Launched EmergencySavingsPlus, an Innovative Matched Emergency Savings Pilot Program
Capital Area Asset Builders (CAAB), with the support from Capital One Bank, has launched EmergencySavingsPlus, an innovative and first of its kind matched emergency savings pilot program for the benefit of low and moderate-income residents of Washington, DC.
Having access to cash or liquid assets to pay for an unexpected situation is something that impacts 4 out 10 Americans. Across the nation, according to the Federal Reserve Board, 40% of Americans cannot cover a $400 emergency expense. Moreover, according to the 2020 Prosperity Now Scorecard, 36.9% of American households are liquid asset poor. This is the percentage of households in the United States without sufficient liquid assets to subsist at the poverty level for three months in the absence of income.
Income poverty is a way of life for 19% of households in the District of Columbia—a rate twice that of the number of households living in income poverty throughout the DC metropolitan region. But far more households (41%) are financially vulnerable. African Americans and members of the Latinx community fare even worse: 57% of Latinx and 63% of African American households are liquid asset poor.
Although many residents in the District earn above poverty wages, these “liquid asset poor” households do not have enough savings to live above the poverty level for just three months if they lose a job, face a medical crisis or suffer another income disruption. This means that more than one out of every two households of color in DC live in a state of persistent financial insecurity, one emergency away from falling into debt or even losing a home.
EmergencySavingsPlus provides low- and moderate-income residents of Washington, DC with access to matched savings incentives to establish an emergency savings account as well as receive financial education classes, credit counseling, and one-on-one financial coaching sessions. Over a 6-month period, each program participant is incentivized to save $100 into a savings account and then they can receive a $300 match from CAAB.
"CAAB is very excited to launch EmergencySavingsPlus which is an innovative and first of its kind matched emergency savings program for the benefit of low- and moderate-income residents of Washington, DC's Wards 7 and 8,” said Joseph Leitmann-Santa Cruz, CAAB’s Executive Director. “We applaud the commitment and investment Capital One Bank is making in CAAB and EmergencySavingsPlus. CAAB is proud that EmergencySavingsPlus will create new ways to deal with the income and asset disruption caused by COVID-19 and begin to provide financial stability opportunities for low- and moderate-income families in Washington, DC.”
- What is EmergencySavingsPlus? EmergencySavingsPlus provides low- and moderate-income residents of Washington, DC with access to matched savings incentives to establish an emergency savings account as well as receive financial education classes, credit counseling, and one-on-one financial coaching sessions. Through the end of August 2020, each program participant is incentivized to save $100 into a savings account and then they can receive a $300 match from CAAB.
- What is an EmergencySavingsPlus Account? It's a type of a savings account owned by you at a bank or credit union.
- What is the Match Offered by EmergencySavingsPlus? Under this innovative and unique matched savings program, for every $1 you save (up to $150), we will deposit $2 (up to $300).
- How much money do you have to save? You can save up to $150 to qualify for the maximum $300 match. There are no strings attached!
- How much money will you receive at the end of EmergencySavingsPlus? If you save up to $150, then you will receive $300 from CAAB.
- How much time do you have to save the maximum $150? You have between now and August 31, 2020 to achieve the savings goal of $150.
- What can the EmergencySavingsPlus Account money be used for? Upon completion of the program, in September 2020 your savings plus earned match-total of up to $400 can be used by you and your family to maintain an emergency savings account so that you have access to cash in case of a personal financial need.
- What are the requirements to participate? You have to be a resident of either Ward 7 or Ward 8 in Washington, DC, and your family's total income must not exceed $121,300.
- Are there additional services provided as part of EmergencySavingsPlus? In addition to the $400 you can qualify for, you will receive free financial education classes, free credit counseling, free financial coaching and access to free tax preparation services.
- When can you enroll in EmergencySavingsPlus? Now! Families will be enrolled in the program until all available spaces are taken.
- Is there a cost to enroll and/or participate in EmergencySavingsPlus? No, you will not be charged anything to enroll and/or participate in the program.
- Who can participate in EmerencySavingsPlus? Washington, DC residents from either Wards 7 or 8.
- Who should you contact to enroll in EmergencySavingsPlus? For further information and to sign up for the program, please send an email message to EmergencySavingsPlus@caab.org.
