Goalsetter Raises $9.6 Million to Promote Financial Health

Savings/financial education platform Goalsetter has raised $9.6 million in new funding.

The company’s Series A extension round, announced Monday (March 25) was led by an affiliate of Edward Jones and MassMutual through its MM Catalyst Fund, with participation from past investors, including Fiserv and Webster Bank.

“This funding will empower us to enhance our B2B offerings and forge stronger partnerships with credit unions, banks and wealth management institutions, expanding our reach and impact to ensure that the next generation can grow into savvy savers and investors,” Goalsetter Founder and CEO Tanya Van Court said in a news release.

According to the release, Goalsetter has collaborated with large-scale financial services companies, including Fiserv, Trustage and CUNA Strategic Services, as well as financial institutions, including MSU Federal Credit Union, InTouch CU, Solutions Bank and Liberty Bank. 

With the new funding, the company will be able to secure additional partnerships with financial institutions, including banks and credit unions, and begin new alliances by year’s end.

As PYMNTS wrote last month, many credit unions are pushing financial literacy by working with schools to help teach students money management skills. 

For example, Bellco Credit Union recently worked with Economic Literacy Colorado (ELC), a nonprofit providing K-12 teachers with professional development skills, to debut a free “Financial $marts” educational activity book for high schoolers.

“From buying groceries and getting a credit card to applying for a bank loan, making financial decisions is part and parcel of everyday life, making financial literacy a core life skill that every individual must have,” that report said.

And this work must begin early in order to give children and teenagers a solid foundation for financial independence, Will Carmichael, CEO at U.K.-based FinTech firm NatWest Rooster Money, told PYMNTS in an interview. 

“Research shows that we form a lot of money habits by the age of 7,” Carmichael said, noting that with the rise of cashless transactions, there is a new urgency to make the concept of money tangible for young, cash-free kids.

Meanwhile, PYMNTS wrote earlier this month that consumers were saving less for emergencies than they were a year ago, with the personal savings rate in January — 3.8% — down from the 4.8% consumers were squirreling away last summer.

“The trend may not ring immediate alarm bells, but it could prove problematic down the road should consumers run into unexpected expenses, and the likelihood that the average American will face a financial emergency is significant,” PYMNTS wrote.

PYMNTS Intelligence research shows that 56% of consumers had recently faced a costly and unexpected expense that cost them on average $5,500.