Saver ARIZONA SAVER
You Can Build Wealth
Companies Support Saves
A Student of Saving
he growing America Saves network is
held together and supported by an array van Buenrostro was a student at here, so I don’t miss it,” he said.
of services. Several financial services
companies are generously supporting these
I Arizona State University when he
learned about Arizona Saves
through his credit union. What partic-
Since joining the campaign, he has
also found new ways to save. He
bought an inexpensive bike with his
All local campaigns and Savers receive ularly caught his interest were the savings and started riding it to cam-
quarterly issues of this newsletter. The cost of workshops the Saves campaign offered pus, saving on the cost of gas and
its production and mailing are covered by on topics like budgeting, purchasing a parking. Although he has since moved
funding from the New Century Financial car, or managing credit. further away from campus, he still
Corporation, now in its fourth year of support. “I normally like to read about tries to save by parking in areas where
Local campaigns receive much technical financial stuff. I thought it would be
assistance from the America Saves national
better and more interesting to go to a “I’ve learned a lot from
workshop,” he said. So he went to a
office. This assistance includes on-site consult-
meeting and signed up as a Saver.
ing and the design and printing of local publi- As a student getting by on finan- Ivan Buenrostro
cations. For three years, Providian Financial cial aid and a part-time job, he wasn’t
had provided financial support for this assis- immediately convinced that he could
tance. Recently, WAMU, which purchased find extra money in his budget to save.
Providian, decided to continue this support. One message that struck home, howev- he doesn’t have to pay and riding the
Local campaigns also receive grants er, was the benefit of making his bus at least once a week. He’s also
ranging from $1,000 to $10,000 to help money less accessible. gone from buying a bottle of water
cover out-of-pocket organizing costs. With that in mind, he opened a each day on campus for about $1.25 a
Recently, Capital One agreed to fund this grant savings account with a small credit bottle to buying water by the case at
program. union in North Carolina. He didn’t get his local discount store for $6 for 18
checks or a debit card for the account. bottles. He’s cut down on the soda he
Three times a year, local campaign coor-
If he wanted to get money out, he had buys too.
dinators meet with each other and, in a sepa- Although he already owned a car,
to send the request in writing. After
rate National Forum to Provide Lower-Income about 10 months, he managed to save he attended the workshop on saving
Household Saving, with leaders from national about $600. money on car purchases. When he
organizations and agencies. Late last year, “I didn’t know what I wanted to bought his first car, he didn’t take into
H&R Block agreed to fund the substantial trav- save that for, but I just wanted to have account the cost of taxes or insurance
el costs and other expenses associated with some extra money,” he said. That and ended up spending more than he
these meetings over the next three years. came in handy when his car broke intended. The workshop has made
Anyone can learn about America Saves, down, although the emergency wiped him better prepared for his next car
how to save, and how to enroll as a Saver out his savings. “Seeing it all gone was purchase, he said. In the meantime,
through the national America Saves website an upsetting experience,” he said. he’s shopped around and managed to
and 15 local campaign websites. Much of the “Mostly, though, I was thankful it was lower his car insurance costs.
there. It felt like the emergency never In his last full semester of school,
expense associated with the development and
happened.” he’s looking forward to the day when
maintenance of these websites is covered by he will begin working. He’s planning
He still keeps the account in North
annual support from GE Money, just renewed Carolina. As soon as a check comes in, to have his check automatically
for a third year. from financial aid for example, he deposited, with a certain amount going
America Saves seeks to promote sustain- sends off money to that account. “I do directly into saving. “I’ve learned a lot
continued on page 3 it the same day that my check gets from Arizona Saves,” he said.
w w w . A m e r i c a S a v e s . o r g
Save Money on Car Purchases
any consumers overspend on In deciding whether to purchase a
M motor vehicle purchases and
related financing, making it
that much more difficult for them to
new or used car, make certain to esti-
mate the difference in total costs. In
addition to the purchase price, total
save and build wealth. cost includes depreciation, gas mileage,
Financial Market insurance premiums, finance charges,
On average, American families
spend more than $7,000 a year on and likely costs of maintenance. New
motor vehicle costs. A significant num- cars almost always are more reliable
ber of families spend well into five digits than used cars, and they have better
February 2007 each year. warranties, but they lose 20 to 40 per-
Money market To help families cut those costs, cent of their value the minute you
account 0.80% America Saves has developed a drive them off the lot.
1-year CD 3.77% brochure, “America Saves on Car
5-year CD 4.02% How to Buy
Purchases.” The brochure is available
for free in both English and Spanish At car dealers, the price of the cars
U.S. Savings Bonds from local Saves campaigns and, with a and their optional features are almost
EE Bond 3.60% self-addressed, stamped envelope, from always negotiable. Before negotiating,
I Bond 4.52% the national office. (See the box on page learn the manufacturer’s wholesale
three for the America Saves address.) price to the dealer, which will be some-
Mortgage Rates The brochure content can also be found what less than the sticker price.
30-year fixed rate on the America Saves website. It is a good idea to negotiate price
mortgage 6.42% The brochure addresses four key over the phone. If the dealer won’t
15-year fixed rate issues related to car purchases — talk price with you on the phone, call
mortgage 6.19% whether to buy, what to buy, how to buy, another dealer.
5-year adjustable and how to finance — and also explains If you are uncomfortable negotiat-
mortgage 6.30% how to save for a larger down payment. ing, consider seeking the assistance of
a car buying service. One nonprofit
Sources: The New York Times, Whether to Buy group offers a popular service,
“Data Bank,” pg. BU 10, February 4, CarBargains, in which several dealers
2007 and www.savingsbond.gov,
Before you buy a car, especially a
February 5, 2007. second vehicle, consider whether you bid for your sale.
have other alternatives. Particularly in Purchasing a used car has special
cities, these alternatives could include risks, because you often cannot be cer-
mass transit, cabs, and rental cars, or a tain of the condition of the car. Check
combination of the three. the Bluebook price to learn what used
If you want or need always to have a cars in a certain condition usually sell
car available, leasing can be an alterna- for. Try to find a mechanic who is
tive to buying. Remember, though, that willing to check the car out before you
Auto Loans purchase it.
at the end of the lease period, you won’t
% of households with a loan own the car. If you buy the car at that
How to Finance
Black 32% point, the lease and purchase costs
together may be more than it would After deciding the amount to be
have cost simply to purchase the car at borrowed and the number of monthly
the outset. payments, shop around using the
Internet or Yellow Pages for the least
Median APR for new car loans What to Buy expensive loan. Saving even half a
Black 7.0% Cars vary widely in cost. The exact percentage point on your interest rate
Hispanic 5.5% cost depends on factors such as the type can result in significant savings over
Others 5.0% of car; its age, mileage, and condition; the life of the loan.
how you finance, insure, and service it; Be sure to call your bank or credit
Median APR for used car loans how many cars you own and how far union for a rate quote before you talk
Black 9.5% you drive them. to a dealer about financing. The deal-
Hispanic 8.0% First, think about the types of mod- er may quote you a rate that is higher
els that meet your needs and are afford- than you should be able to get based
able. Then search the Internet and pub- on your credit risk (the "buy rate"). If
Source: Federal Reserve Board, lications such as Consumer Reports for the dealer quotes a rate that is above
2004 Survey of Consumer Finance.
information about the features, perform- that quoted by your bank or credit
ance, durability, and costs of the models union, inform the dealer of the lower
that interest you. Finally, look over and rate and ask the dealer to match it.
test drive any of these models.
A Quarter Saved
is a Quarter Earned
o one knows better than One can save a bunch of
N Savers how to find the extra
dollar here and quarter
there that, over time, add up to
money if one just avoids vending
machines that sell chips, candy,
and soda. Usually the food and
drinks at such machines are gross-
Send your savings tips to:
American Saver, c/o Consumer
Federation of America, P.O. Box 65686,
Washington, D.C. 20035-5686.
substantial savings. Here are a
ly overpriced. I have saved about If we select your tip for publication,
few of their savings tips.
$40 a month simply by avoiding we will send you a $50 EE Series
the temptation of buying stuff out Savings Bond (initial value $25). Please
of the vending machines and sim- include your name, mailing address, and
Instead of buying paper towels,
ply walking past these machines. phone number so we can contact you to
use hand towels that are washable.
GREG RUBIN arrange for your savings bond.
That can save you $100 to $300 a
year, depending on the brand you PISCATAWAY, NJ
I ride my bike to work at least Financial Services Companies
TRICIA BROWN one day per week. I save an aver- continued from page 1
age of $50 a month by doing so.
The real benefit however is to my able home ownership as an effective wealth-building
I bought a set of hair clippers strategy. Fannie Mae continues to help cover the
and thinning scissors that I use to physical and mental health, which
itself translates into potential sav- expenses of this work. Similarly, America Saves seeks
cut my own hair. I have success-
ings in healthcare costs. to help consumers save money on car purchases and
fully groomed my hair this way for
over two years, and I still get a BEATRICE L. PETTIT financing. A series of grants related to settlements from
surge of satisfaction each time I MURRAY, UT auto finance related litigation pays for this program.
avoid the barber knowing that my “Financial institutions are critically important to
savings keep adding up. Each time you get a raise, helping Americans save and build wealth,” said
adjust your 401k. Just change America Saves coordinator Nancy Register. “It is grati-
JAMES H. COOK JR. your deduction so that you are
GASTONIA, NC fying that so many of these institutions, including sev-
putting in an extra percentage of
eral lenders, have chosen to support America Saves.”
I eat out often, which is very your paycheck. You will never
costly. One way I’ve saved hun- notice that the money is gone from
dreds, however, is by not ordering your check, and you’ll be putting
a beverage. When eating at a
restaurant, I always ask for lemon
more into savings.
for my water, then add a little
sweetener to make my own lemon-
SALT LAKE CITY, UT
ade. The place where I buy lunch I pay myself to do the things I
love — well, the things I love that American Saver is the quarterly newsletter of
every day doesn’t have lemon, so I the America Saves campaign, a national pro-
bring my own from home and do don’t cost money. For example, if
gram to encourage and assist Americans to
the same thing. This beverage I borrow a book or movie from the
save and build wealth more effectively.
alternative has cut my eating out library and stay home to read it, I
pay myself as if I went to the The campaign is coordinated by the non-
expenses by more than $50 per profit Consumer Federation of America
month. movie or bought the book. I liter-
ally transfer the funds into my sav- (CFA), supported by national foundations,
VANESSA L. LOWE ings account. Lots of things I do and advised by dozens of non-profit, gov-
SILVER SPRING, MD ernment, and business groups. A generous
can be done for free or for next to
grant from the New Century Financial
Buy clothing out of season for nothing: walking the dogs and Corporation supports the publication and
kids. For example, I buy my son’s enjoying the company of friends, distribution of the American Saver.
winter snowsuit and boots for the family and neighbors are other
examples. In 2004-2005 I did such Questions about how to start a local savings
next year when this winter’s items campaign in your area should be directed to:
go on clearance. Same with sum- fun, free activities so much that I
Nancy Register, America Saves, c/o CFA,
mer clothes. saved enough for a down payment.
P.O. Box 65868, Washington, D.C. 20035-
TANYA AFTEM ALMAZ SULLIVAN 5686; 202-387-6121 (phone); 202-265-
NEWBURG, ND SAN FRANCISCO, CA 7989 (fax); email@example.com.
American Saver Editor: Barbara Roper
News F R O M L O C A L C A M PA I G N S
Note: This is not an exhaustive list of the activities of all America Saves sites, but rather a sampling of activities from several of the local
campaigns. For a more complete list of America Saves campaigns, be certain to visit our website at www.americasaves.org.
Tennessee Saves state partners are shops offered by 50 percent, Northwoods entered into a national competition.
coordinating statewide promotion of Saves (WI) is planning for similar Cleveland Saves enrolled approxi-
America Saves Week. Planned activities increases in 2007. mately 1,786 new Savers in 2006, well
include a Tennessee Saves Day in Northland Wisconsin Saves is beyond its goal for the year of 1,500 new
Nashville, statewide public service working with local financial institutions to Savers. In doing so, it brought its total of
announcements and news clip broadcasts, educate their employees about the cam- enrolled Savers since its launch to 8,650.
and local youth Piggy Bank competitions. paign. The campaign also conducted 172 work-
In addition, local coalitions across the Okaloosa Saves (FL) is planning to shops in 2006, also exceeding its goal of
state plan to promote savings education in hold a financial fair during America offering 100 workshops annually. The
school classrooms and at community Saves Week as well as a Piggy Bank campaign is planning a Cleveland Saves
events. The Governor’s office plans to beauty pageant. The local newspaper, Week as part of America Saves week with
issue a proclamation, and the state legisla- the Daily News, is sponsoring a contest a goal of encouraging area citizens to take
ture plans to issue a Joint Resolution in for best savings tips and plans to print financial action, by making a commitment
support of Tennessee Saves. them in the Sunday edition of the news- to save, invest, and build wealth.
Tampa Bay Saves has gotten off to a paper that week. Charlotte Saves held its annual
successful start, with nine motivational The Military Saves campaign is Community Partnership Luncheon in
sessions held in the first three weeks of the launching at the Department of Defense January. Jeff Kan, Senior Vice President
campaign and 65 new Savers enrolled. with a Military Saves Week to coincide and Officer in Charge of the Charlotte
The campaign is planning a financial fair with America Saves Week. A kick-off branch of the Federal Reserve, was
in late February that will include financial event is planned at the Pentagon, and spe- keynote speaker, and Joe Smith, North
management exhibits, prize drawings, cial drives to enroll Savers are being Carolina Commissioner of Banks, present-
refreshments, and information about planned in the Southwest Navy region, at ed the annual partnership award to
enrolling as a Saver. A number of organi- Travis Air Force Base, at the Los Angeles Students in Finance Education at
zations have signed on as campaign part- Air Force Base, and several other installa- University of North Carolina’s Belk
ners, including the Florida Department of tions and regions. College of Business.
Financial services, the IRS, and several Gadsden Saves (FL) is planning a Arizona Saves plans to pilot Arizona
local financial institutions. “Get Out of Debt Savings Spree” in early Native Americans Save in 2006 with the
Philadelphia Saves planned its first March in Quincy, Florida. The event is support of several local Tribal Nations and
annual Philadelphia Saves Week in associ- supported by several banks, credit unions, Tribal organizations. The campaign plans
ation with America Saves week, with sup- and community organizations. to develop Nation-specific brochures and
port from the Mainline Health Employee Colorado Saves and the Denver materials in conjunction with these
Federal Credit Union. The campaign chapter of Junior Achievement are joint- groups. Emphasis will be on educational
signed up 718 Savers in just two months ly sponsoring a poster competition programs in schools, as well as topical
who committed to saving $1.45 million among local schools on the theme, programs in areas such as payday lending
dollars toward their financial goals. “Plant the Seed of Saving to Grow Your and car purchases for adults.
Building on a successful year in 2006, Future.” First place winners for elemen-
when it increased the number of work- tary, middle, and high school will be
w w w . A m e r i c a S a v e s . o r g
Washington D.C. 20035-5686
P.O. Box 65686
PERMIT NO. 8772
WASHINGTON, D.C. You Can Build Wealth