NEWS RELEASE

Media Contact:
Renee Beauregard 303-400-3456
Ken Scott 713-682-1382, pager 1(800) 901-4418

Lack of Savings Key Issue Revealed in
Consumers United Association 2003 Member Survey

Denver, CO - August 29, 2003 - Consumers United Association recently conducted a survey of its 9,439 members. Among the findings were 27 percent of respondents do not save money each month and 22 percent indicated they experienced collection problems in the past year.

CUA surveyed its membership to determine financial issues, behaviors and concerns affecting its membership. The overwhelming majority (81 percent) reported being impacted by the downturn in the economy.

Many of the 27 percent of respondents who do not save regularly could find themselves in immediate financial hardship should they lose a job, get divorced, incur a major medical, house repair or other large bill.

The CUA survey finding regarding saving is consistent with the Federal Reserve Board 1998 Survey that reported 23 percent of all Americans do not save regularly.

"Saving is an important financial tool for everyone, but particularly for those families living paycheck to paycheck," said Renee Beauregard, executive director, CUA. "Savings can help prevent home foreclosures or evictions and other financially devastating problems."

To help CUA offers the following tips to begin saving.

• Start small and increase as you move forward. Passing up one meal out a week could potentially add more than $100 per month to a savings account. Make it a goal to put at least a portion of any income raises into savings.
• Keep it simple. One way to make saving simple is to have your monthly savings amount deducted automatically from your checking account and placed into your savings account. This prevents you from "forgetting" to make your savings deposit.
• Involve the whole family. Your children and spouse will be more likely to pitch in if they are involved from the beginning.
• Deposit tax refunds or bonus checks. Any unexpected or extra income is a great way to build your savings. You likely have not incorporated that money into your monthly budget and therefore will not miss it if it is deposited directly into savings.
• To celebrate paying off a loan or car note, pay yourself. Continue to make the monthly payment only deposit it directly into savings. A few extra months of payments shouldn't break the budget and will be a big boost to your savings.
• Set a goal and treat yourself when you reach it. A good goal is to put aside three to six months of living expenses in savings. Once you reach your goal congratulate yourself and everyone who participated and treat your family to an inexpensive outing such as a trip to the zoo or a hiking and camping trip.
  

Consumers United Association (CUA) is a nonprofit consumer advocacy association serving consumers in Colorado. Our mission is to improve the financial lives of consumers by providing financial education and advocacy. CUA offers services and resources to aid consumers in the resolution of consumer problems and provides a united voice for consumers in the legislative arena. For more information visit www.cuacolorado.org.