The goal of the SaveFirst Initiative is to train college and graduate students to (a) offer free tax preparation services and access to checking and savings accounts and Individual Development Accounts (IDAs) to low-income individuals who are eligible for an Earned Income Tax Credit refund and (b) plan, organize, and administer a series of educational seminars for low-income individuals on savings and investments.

 

Why SaveFirst?

Abusive practices such as payday loan schemes, check-cashing operations, and predatory lending target low-income individuals and dramatically erode their earnings.  Commercial tax preparers offering refund anticipation loans to individuals qualifying for the Earned Income Tax Credit can charge an amount exceeding aneffective annual rate of 700% through exorbitant fees and interest rates.  SaveFirst offers a smarter alternative:free taxpreparation services and seminars designed to equip members of our community with the skills and knowledge they need to protect themselves from predatory lenders.  In addition, we offer access to reputable financial institutions that can help low-income individuals establish checking and savings accounts and Individual Development Accounts and begin to develop assets.

 

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How Does it Work?

Tax Preparation

Trained college and graduate students provide free tax preparation services to low-income individuals and families, targeting those eligible for the Earned Income Tax Credit.  This assistance will be provided atmultiple sites in Birmingham and Tuscaloosa on a daily basis from January 15 –February 17, 2007.

Banking the Unbanked

Tax preparation is the perfect time for low- to moderate-income individuals without bank accounts to gain access to the benefits of being “banked.”  Tax seasonmay be the only time of the year that they have a conversation about their long-term financial situation or think about their income as a whole.  A large tax refund may provide them the financial flexibility necessary to begin to establish savings.  Products we offer our clients include checking accounts, savings accounts, and Individual Development Accounts.

Financial Literacy

To counteract abusive predatory lending practices, SaveFirst is partnering with regional banks and institutions of higher education to offer a series of seminars on financial literacy.  Learning about money is as important as earning it—and effective money management results from access to information and disciplined behavior.  Financial literacy seminars will be offered each Saturday from January 15 – February 17, 2007.

SaveFirst Partners

SaveFirst is a collaborative effort between regional colleges and universities, a task force of college and graduate students, the staff of Impact: An Alabama Student Service Initiative, the City of Birmingham Mayor’s Office, the City of Tuscaloosa Mayor’s Office, the Internal Revenue Service, regional banks, AARP, the United Way of Central Alabama, the Alabama Asset Building Coalition, and businesses throughout the Birmingham and Tuscaloosa metropolitan regions.