Released February 1, 2010
LOGAN, Utah -- A 2009 survey conducted by MetLife indicated that 50 percent of Americans have less than one month’s expenses saved for emergencies.
“That statistic is worrisome,” said Ann House, Utah State University Extension assistant professor and Utah Saves coordinator. “This means that when there is an unexpected expense, such as a car or appliance repair, Americans have to use their credit cards or take out a short-term, high-interest loan.”
To help Utahns jump start their savings, the “Take $200” campaign was created to emphasize the importance of saving for an emergency, said House. By placing at least $200 from this year’s tax refund into a savings account, individuals will save money by not placing unexpected, necessary expenses on credit. This campaign, created by Utah Saves and promoted with the Volunteer Income Tax Assistance (VITA) program, will support tax form 8888 which can be used to directly deposit tax refunds in up to three financial institution accounts.
“We don’t want to lessen the importance of getting out of debt in order to gain financial stability,” said Stephanie Young, Utah Saves assistant and creator of the “Take $200” campaign. “We want to create awareness that setting aside money for future, unexpected expenses will cause people to never have to enter debt in the first place.”
Tax season is a perfect time to start this type of savings fund due to the generally large amounts of tax returns given back during the season, said Young. Use tax refunds to pay off debt, purchase needed items and also to save for a rainy day. Saving at least $200 from tax returns will allow financial stability in uncertain times.
“There is a stigma that only low-income individuals are on the brink of financial disaster,” said Young. “This is found to be incorrect. Twenty-nine percent of individuals who earn more than $100,000 a year have less than one month’s savings. The “Take $200” campaign is relevant to all individuals this tax season regardless of socio-economic class.”
For more information on the “Take $200” campaign and other financial matters, visit http://www.utahsaves.org or dial 2-1-1. Utah Saves is an initiative of United Way, Utah State University Extension and other community partners and focuses on promoting healthy financial actions across the state through unbiased information, advice and encouragement.
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http://extension.usu.edu/htm/news/articleID=8562
Contact: Ann House, 801-468-2846
Writer: Julene Reese, 435-797-0810
