ST. PAUL, Minn. (3/4/15)--A representative from Affinity Plus FCU, St. Paul, testified in support of a Minnesota bill allowing prize-linked savings (PLS) accounts--a bill that unanimously passed the state Senate Commerce Committee Monday.
State Sen. Vicki Jensen (DFL-Owatonna), left, and Keith Malbrue, chief administrative officer/chief information officer, Affinity Plus FCU, testify during Minnesota's Senate Commerce Committee. (Minnesota Credit Union Network Photo)
S.F. 1043, which is supported by the Minnesota Credit Union Network (McCUN), was authored by Sen. Vicki Jensen (DFL-Owatonna).
"America is facing a savings emergency," said Keith Malbrue, chief administrative officer/chief information officer, Affinity Plus FCU, during the testimony. "Approximately a quarter of U.S. citizens have absolutely no savings at all, and 48% would have to borrow money or sell assets to come up with $400 for a car repair or doctor bill. Prize-linked savings will help encourage more informed financial decisions and develop stronger savings habits."
Malbrue is also a board member at Doorways to Dreams, a nonprofit that focuses on the role the financial services industry can play in serving low-income communities.
"While S.F. 1043, and its House companion bill H.F. 1127, still have a long way to go before becoming law, we're very pleased by the Senate Commerce Committee's approval," said MnCUN President/CEO Mark Cummins. "Sen. Jensen has always been a strong advocate of financial literacy efforts, and we thank her for authoring this bill."