Commonwealth undertook an in-depth research project with a small group of credit union account holders in Greensboro, NC in order to better understand the granularity of challenges faced by the financially vulnerable and the role prize-linked savings accounts can play in engaging with savings and coping with financial disruptions. Understanding the full picture of financial challenges is crucial for designing appropriate solutions.

“While Paul concedes that down times of employment are theoretically ideal opportunities to manage financial decisions—given the extra time—the stress of not having work is disabling.”

“Prior to the study’s onset, Silvia and her husband were both employed and had a combined household income that allowed them to live comfortably; however, Silvia lost her job just prior to the first interview. When she experienced this abrupt change late in her career, she did not have traditional savings to turn to.”

• The low barrier for entry and engaging product design encouraged account holders to see saving as a rewarding activity and helped them start a savings habit.
• The incentive of a chance to win a cash prize can provide the motivation needed to start an emergency fund.
• PLS accounts offered a valuable solution for making a savings buffer easier to achieve, which is crucial for households with high financial volatility.
• The participants found themselves facing unexpected life changes and emergencies that they hadn’t prepared for.