The U.S. Commerce Department recently reported that the nation's personal savings rate for 2006 was at a negative 1 percent, its worst since the Great Depression in 1933. The negative rate means people are spending more than they are earning. They are dipping into savings or using credit to pay for their current spending.

United Way of Salt Lake recently conducted a comprehensive research study to understand the aspects of financial instability that contribute to Utah's high bankruptcy rate and identify other factors that indicate Utahns' levels of financial security. The resulting report, "Living on the Edge: Utahns' Perspectives on Bankruptcy and Financial Stability" shows that despite demonstrating high levels of financial awareness and a commitment to saving, Utahns are very concerned about insufficient income, their ability to save and living paycheck to paycheck.

The report is the result of months of research and interviews. Eight focus groups were conducted with bankruptcy filers. These filers identified 39 "risk factors," which included such things as disability, job loss, divorce, substance abuse, overspending, excessive debt, lack of heath insurance, insufficient income, poor financial management skills and high housing costs.

Following the focus groups, a survey of nearly 2,000 randomly selected Utah households was conducted to test these financial risk factors among the general population. The results show that one-third of middle- and low-income families are living paycheck to paycheck and 28 percent worry that inadequate savings affects their financial security. Other concerns include wages, health care costs, easy access to credit, the increased gap between income and the costs of basic needs, increased consumer debt and decreased household savings.

In order to help Utahns keep more of what they earn, save money and build assets, two valuable initiatives have been created by coalitions led by United Way. One is called Earn It. Keep It. Save It — designed to help the approximately 40,000 eligible Utah households that do not take advantage of the federal Earned Income Tax Credit (EITC). It is estimated that Utahns leave between $50 million and $80 million unclaimed each year. The initiative combines a social marketing campaign with free tax preparation sites that assist low-income individuals and families statewide. As a result, last year, we saw an increase of between $11 million and $21 million in Utah EITC claims.

The second initiative is Utah Saves — a social marketing campaign designed to help all Utahns to address the growing problems associated with family financial insecurity by promoting debt reduction, savings and asset formation. All over Utah, people are proving that they don't have to be rich to build wealth. In its first year, Utah Saves enrolled more than 3,000 Utahns as "Savers" and, collectively, they saved more than $3 million. The week of Feb. 25 to March 4 has been designated as Utah Saves Week, and will feature seminars aimed at helping people increase their awareness about the need to save money, reduce debt and build assets. Financial institutions and credit counseling services are also offering special incentives for Utah Savers. Go to www.utahsaves.org or dial 2-1-1 for information.

Our study also identified several economic factors that impact financial stability. Working with other local United Ways in Utah, we are convening a high-level group of business and civic leaders to develop solutions in the areas of income, assets, housing, health care and financial education. By working together, we Utahns can continue to develop meaningful solutions to these challenges.

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Deborah Bayle Nielsen is the president and CEO of United Way of Salt Lake.