This story appeared in Bank Digest.
The Consumer Financial Protection Bureau has announced a Project Catalyst research pilot to explore ways to encourage saving among consumers at tax time. The pilot will focus in particular on tax-time saving practices among low-income consumers in order to help them improve their long-term financial well-being, according to the CFPB.
"Saving a portion of tax refunds can enable consumers to improve their long-term financial health and place more low-income consumers on a path to economic stability," CFPB Director Richard Cordray said. He added, "This project can help us better understand how to encourage tax-time saving."
Over the past three years the bureau has launched a series of initiatives to encourage consumers to save a portion of their tax refund. These efforts include providing informational materials and training to volunteer tax preparers assisting low-income and moderate-income consumers, as well as pilot projects to increase awareness among consumers of available saving options.