TEXAS CITY, Texas — AMOCO FCU has teamed up with a local TV station to make saving money the next big thing.
Saving is becoming chic again, but many Americans are having a tough time following the trend that has led to the nation's largest savings rate since 2001, so the $511-million CU, in conjunction with a local TV station and media group, has created the "Earn or Burn Money Challenge."
The 10-month project will follow four families on their respective savings journey in a reality TV-styled competition.
AMOCO FCU employees will act as personal financial counselors throughout the competition to guide the families on the right path. In addition to a strong fiscal education, the winning family will receive a grand prize of $20,000.
"Financial education is a major initiative for us. It's something we've wanted to do for a long time," said marketing director Tina Linquist, noting AMOCO pulled ideas from other credit unions who are engaged in savings challenges to create its program. "Each one of them has its own little twist. We took a little bit from each of the other credit unions and built from that."
Each family's unique financial situation - everything from yearly income to monthly expenses and debt load-is laid out on the contest's website and their efforts to save more will be closely monitored. As visitors follow the competing families they can also check out tips on how to start smart financial habits in their own lives and play along at home by tracking their expenses, viewing their spending habits and calculating their net worth.
"Each one of the families that are competing received a laptop" Linquist pointed out. "We want them to blog and make video diaries so they can share their experiences. This is real life, real stuff and I think that is what is going to generate interest so other people can learn from them."
AMOCO FCU is also working with a local television affiliate, KHOU, to promote the program by both getting it featured in a news program and running advertisements on its airwaves.
"It's a great way to reach not just our members but the community," Linquist said.
Linquist expects a few flare-ups between the contestants and their financial counselors as some major lifestyle changes will need to be made for those families to get on the way to their financial goals.
"They are all adults and they all know they are in this situation. Now they have to face it and do something about it. They're welcoming that because they know they need that tough love," she explained. "The oldest lady in the challenge, who is 57, has $0 saved for retirement and $20,000 in debt. And that's how much she makes a year. We're not going to be able to fix her situation completely, but at least we're getting her started and getting her some education."
Other families are trying to save money to send their children to college and 10 months will not be anywhere close to enough time to get those situations squared away. But Linquist is confident that the challenge will get the families on their way to their final goals, and help those members help themselves.
