Rural Residents Face Immense Challenges to Saving

Rural Residents Face Immense Challenges to Saving

October 7, 2007
By ERIC GRAF
Cronkite News Service

PHOENIX (Monday, Oct. 1) _ As this city launched a campaign urging residents to save more, the head of a statewide group that advocates saving said Monday that residents of rural areas face even greater challenges when it comes to putting money aside and managing debt.
“The challenges of rural areas are immense,” said Patrick Jordan, executive director of Arizona Saves. “Financially, there’s less education and less choice, which means less opportunity.”

Jordan joined Mayor Phil Gordon at a news conference launching “Building Prosperity Month,” an effort to help Phoenix residents learn to better manage their finances. The city is partnering with Arizona Saves, a nonprofit organization that helps Arizonans save money and eliminate debt.
Jordan said the increasing cost of living makes it difficult for Arizonans to put money aside and manage debt. He said the squeeze is especially tough for the middle class.

“We’re seeing more downward mobility than upward mobility,” he said. “Wages are stagnant, and inflation’s still there.”
Failing to manage debt could cost people their homes, Jordan said.

He said financial planning help can be hard to come by in rural areas, but he noted that Arizona Saves can provide assistance over the phone.
Tony Corcoran, director of administration for the Northern Arizona Council of Governments, said it’s difficult to find funding to hold classes or counseling session to help rural residents manage their finances.

“We have to justify what we’re doing to get grants, and it’s just not a priority for those handing out the grants,” Corcoran said.
However, some local governments are making efforts to provide money counseling. Coconino County is running a financial workshop for American Indian women.

“There was a big gap in our area in financial literacy,” said Holly Figueroa, an administrative specialist at Coconino County Career Services.
The workshop teaches people how to get a checking account, manage debts and start home business, Figueroa said. Although the classes are aimed toward American Indian women, they are open to anyone.

The Phoenix campaign includes classes on how to become more financially secure and “Save Your Change Week” from Oct. 22-27.
The average home has about $100 of loose change lying around, and collecting it is the perfect opportunity to start saving, Jordan said.
Phoenix would be more prosperous if residents managed their finances better, Gordon said. He noted that nearly a quarter of Phoenix residents don’t have checking accounts and nearly two-thirds lack savings accounts.

“One month is not enough, but it starts here today,” Gordon said