Nebraska CUs To Launch Savings Lottery
LINCOLN, Neb. – A key lawmaker last week introduced legislation that would allow credit unions to stage their own savings lottery or raffle, as part of an effort to boost savings among Nebraska’s consumers.
The bill would make Nebraska one of just three states to allow such financial lotteries and comes on the heels of last year’s $100,000 lottery in Michigan, which prompted consumers in that state to save an estimated $8.5 million.
“Studies show the average American family spends $540 a year on lottery tickets, when they arguably should be saving some of that money in case of an emergency,” said State Sen. Amanda McGill, who introduced the bill. “Saving raffles are a financially safe way to promote savings among Nebraska families while allowing them a chance to win.”
Doorways to Dreams, a national non-profit specializing in expanding asset building opportunities for American families, completed a pilot savings promotion raffle in Michigan. The participating credit unions offered entries for monthly prizes and a large grand prize each time members deposited $25 to this prize-linked savings account. The prizes are taken from part of the interest that would have otherwise been earned on the savings accounts.