In December 2023, the Savings Collaborative helped 500 families save $400 each to “protect against small financial emergencies” — 149 families saved $2,500. The strategy decreases the likelihood of experiencing financial hardship when life circumstances change.
According to a May 2022 study by the Federal Reserve Board, 37% of Americans do not have $400 to cover an unexpected expense. Among the 649 families which Savings Collaborative helped, most were Hispanic and Latino immigrants.
“The importance of saving is to think about the needs of tomorrow,” said Faviola Molinar, who is licensed in child care and began saving with Savings Collaborative in November 2018.
Molinar attended a Savings Collaborative event in Rifle where support was provided in both English and Spanish. Molinar recalls simply raising her hand and then meeting Barbara Freeman, the founder of Savings Collaborative. Freeman helped Molinar start a savings account. She started with just $10.
“I had faith in them and confidence because their community ambassadors were people I knew from the community,” Molinar said.
“Our ambassadors are Spanish speakers and it’s really culturally responsive,” added Freeman. “Our mission is to build financial resilience and wealth across generations. We do that by making it fair and easy for people, who are left outside of mainstream banking, to save money and develop healthy savings and financial habits.
“We’re talking about directly impacting the economic opportunities of historically excluded communities of color, immigrants, refugees and people who are living on low income,” she continued. “We’re saying we’re here with you and you matter,” Freeman said. “We’re reaching out in your language and in your culture and saying, ‘How can we help you?’ … I think that’s a really different approach compared to a bank.”
Freeman shared that there is a range of financial emergencies which people can experience — from losing a job to medical bills. While Savings Collaborative hopes to help folks save enough money to pay bills during unexpected lulls in employment or financial setbacks, it also emphasizes the importance of building healthy savings habits so people can eventually make their bucket-list purchases.
As far as education, Savings Collaborative also offers one-on-one coaching, which is important when working with immigrant families who may not know how a savings account works.
Savings Collaborative uses a multilingual app which provides real time feedback and financial tools that help with goal setting and more. The community ambassadors also help bridge the technology gap when necessary.
“It’s very easy to use the app,” said Molinar. “One thing that I love is that you receive a different motivational message every time you save.”
“Our motto is ‘little by little,’” Freeman said. “Little by little your money adds up and that’s the idea behind it. If you’re saving $20 a week, that’s almost $100 a month and for a year that’s $1,200.”
“The habit of saving is very important,” Molinar said. “Goals are met and when opportunities arise, one is prepared.”
“This is our community and it matters that people succeed, hit financial resilience and build wealth across generations,” concluded Freeman.