Mica to AP: People need rainy day funds

WASHINGTON (2/21/08)--People need to save more of their income to create a rainy day fund or backup, Dan Mica, president/CEO of the Credit Union National Association, told the Associated Press yesterday. Forbes published the item Wednesday.

The article focuses on "America Saves" week, a national campaign starting next week that aims to help people save more--with this year's focus on saving automatically.

Numerous reports of people missing credit card payments and falling behind on mortgages should drive home the point that more savings is needed, Mica said in the article.

Having money automatically transferred into savings means "you never miss it," Mica said. Once that account is started, consumers can consider increasing their level of savings every time they receive a raise.

"And anytime you get some extra money, like a tax refund or a tax rebate, a certain amount should go into savings, too," Mica said.

More than 1,000 government agencies, corporations and nonprofit groups have combined efforts in the America Saves program with a goal of increasing consumers' understanding the need to save for emergencies, for a down payment on a home, to educate children or to finance retirement.

courtesy of cuna.org