Piloting a Path for Employee Financial Resilience

Commonwealth
Categories: Emergency SavingsIncome Volatility

6 Findings from First Major US City to Launch Employee Emergency Savings Pilot

Emergency savings are core to building financial security but remain elusive for many households. According to recent Federal Reserve data, four out of ten Americans would struggle to cover a $400 emergency expense. Saving for unexpected expenses may take a backseat to paying for everyday needs, but setting aside even small sums of money can prevent minor emergencies from turning into major obstacles.

Recognizing this opportunity, the City of Boston developed the Emergency Savings Fund Pilot, the first major effort by a US city to encourage employees to save for emergencies. The City of Boston’s Economic Mobility Lab and the Mayor’s Office of Financial Empowerment (OFE) partnered with the nonprofit Commonwealth to evaluate the pilot. In this brief, we share six key findings for cities seeking to run their own successful split deposit programs.