The simple answer is everyone.
While it may be cool to add a new feature to your mobile app or PFM, it’s tempting to underestimate the widespread impact of Calls to Action. But regardless of a user’s financial health, additional funds are always welcome.
Calls to Action offer advice directly to the user and are tailored to the unique spending habits of the individual. Users vote with their wallet, and FinGoal’s insights are designed to help the individual save without sacrificing value.
The National Financial Educators Council survey found that the average American lost $1,389, in 2021, due to a lack of financial literacy. There’s long been a gap between those who feel equipped to handle their finances and those who feel intimidated by financial decisions. And the gap is only getting wider. According to the 2022 Junior Achievement and Citizens Bank found that 41% of teens said they had no financial literacy classes in school.
For the user who feels daunted by all they do not know, Calls to Action provide a tangible and easily-accessible place to start. Consider the recently separated man whose former-partner was a CPA and handled the household finances for their 12 year marriage. He knows he needs to take a deeper look at his finances, but he’s out of practice and the insecurities that arise from being out of practice coats the entire budgeting process with an emotional cloud.
Life is busy, and many users have crammed 28 hours of activity into a 24 hour day. And while households could be making simple money saving changes, they simply don’t have time to do the research. Calls to Action can provide a well researched suggestion directly to your user’s transaction feed.
Consider the recent college grad who is working two jobs and planning a wedding. They have heard their neighbor got a great deal on Mint Mobile, but they haven’t taken the time to research how to switch. They also know that they should call and negotiate their internet bill down, but they don’t have 75 minutes to sit on hold.
CNBC’s Momentive poll found that 25% of respondents felt financially stressed “all the time” and another 41% said they experienced financial stress sometime of the time. That’s 66% of Americans who could benefit from even small savings each month. Consider the user with unpredictable income. He’s a part-time Lyft driver and depending on the days he can work, his income varies by $75 to $125 each week. He’s looking for help getting his subscriptions under control and he thinks he could save money with a different insurance provider. And as gas prices increase, they’re cutting into his profits, so he’s wondering how to get the best deal at the pump.
Last year the Federal Reserve reported that American household debt was at $14.6 trillion. Whether it’s credit card debt for a season of unemployment or medical debt from an unpredictable health concern, debt is a heavy burden for consumers. People are losing sleep. They’re concerned about how to make ends meet.
Consider the young parents of two preschool kids. Before the pandemic they had childcare lined up, but their daycare closed in 2021. Their kids are on several waitlists, but a spot didn’t open up for 6 months. However, the cost of childcare at the new facility increased by $200 each month. While they waited, one parent stayed home with the kids and worked a few weekend shifts, but between the increased costs and the reduced income, they wracked up a few thousand dollars in credit card debt. And to make matters worse, interest rates are on the rise. They know there are places they could save a few extra dollars, but they don’t even know where to start.
Whether it’s home ownership, a college education fund, or building emergency savings, finding more money to build savings faster is a win. Calls to Action help users cut down on weekly or monthly costs. And when users can reduce their discretionary spending, those savings can be applied to meet a savings goal even sooner.
Consider the couple who are saving to purchase their first home. They live in an area with a competitive housing market, so they are hoping to be ready to purchase as quickly as possible before costs rise any further. They both commute to work and the increased gas costs are really cutting into what they hoped to save.
Younger employees are paying a higher percentage of their earnings for basic living expenses, and need help finding money to contribute. Lower wage employees often believe they don’t have enough to begin investing. But identifying funds and normalizing small, regular payments, financial institutions can support long-term financial health.
Consider the single guy who’s working a stable job and was earning good money before the pandemic. But with the cost of living skyrocketing he doesn’t have anything to contribute to his 401K. His rent increased 25% in the last 2 years, and even though he knows he should eat out less, that’s quality social time with his friends. He knows that contributing even $25 each pay period would be helpful, but he’s not sure where to find the money.
For a variety of reasons, users need Calls to Action. By providing a clear-cut Call to Action, insights can provide direction for people who need a nudge in the right direction.
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