Shelly Kavanagh is a seasoned banker, but her primary motivation isn’t just to promote banking — it’s to empower consumers to achieve their financial goals. As Senior Vice President and Director of Retail Delivery at WSFS Bank, Kavanagh believes that everyone can benefit from a conversation with a banker.
“It’s really about the individuals and their own personal financial journey,” Kavanagh said. “So, whether they’re getting started with building a nest egg or they’re looking to save for a future purchase like a home, I think it’s really important to encourage consumers to speak to their local bankers no matter where they bank.”
Unlocking financial tools
Kavanagh pointed out that many people may be unaware of the financial tools available to them, which can hold them back from reaching their goals. A recent WSFS Money Trends survey revealed that a significant number of respondents were unfamiliar with financial products such as high-yield money market accounts and Certificates of Deposit (CDs).
This lack of awareness often ties back to financial constraints. Nearly half (46%) of the respondents reported saving less than they were a year ago, which might make high-yield accounts with minimum balance requirements seem out of reach. However, Kavanagh explained that CDs can be a more accessible option.
“CDs typically have lower minimum requirements than high-yield money market accounts and often provide better returns than standard savings accounts,” she said.
Making savings work smarter
While CDs require consumers to lock in a fixed amount for a set term (ranging from one month to several years), they offer a reliable way to grow savings. For those who can plan their cash flow effectively, CDs with different term lengths can be staggered. This is a strategy called “CD laddering.”
“CD laddering allows consumers to benefit from the higher interest rates of long-term CDs while keeping funds accessible with shorter-term options,” Kavanagh explained.
Staying disciplined in spending
Achieving financial stability isn’t just about saving, it’s also about managing spending. According to Kavanagh, one of the simplest ways to do that is by making a list before shopping to help avoid impulse purchases.
“Some consumers also find paying cash or using their debit cards helps them keep on budget, as opposed to using a credit card or a buy-now-pay-later (BNPL) platform,” Kavanagh said.
BNPL services (such as Affirm, Afterpay and Klarna) can be enticing because they allow consumers to spread payments out over multiple months with no interest. But these services appeared to be causing problems for some survey respondents. Thirty-five percent of those who use multiple BNPL services said they had lost track of what they owe.
“Consumers using multiple BNPL services often lose track of payments,” Kavanagh warned. “This can lead to financial strain, especially if they’re unable to pay on time and face late fees or credit score impacts.”
Navigating the holiday season
As the holiday season approaches, the temptation to overspend may be stronger than other times of year. While the desire to overspend on loved ones is understandable, Kavanagh encouraged consumers to make sure they’re not jeopardizing their finances to do so.
For example, consumers who buy gifts with credit cards or BNPL plans should pay close attention to their debt and, if they’re using credit cards, their interest. Kavanagh suggested that “using financial planning apps can help keep track of debt and spending.”
Take advantage of the current interest rates
Despite recent challenges posed by higher interest rates, Kavanagh sees a silver lining for savers. Elevated rates mean that products like CDs and money market accounts are offering better returns than in previous years.
“We’re still in this slightly elevated interest-rate market and they can benefit from that by talking to their bankers and talking about CDs or money market accounts,” she said. “So, I strongly encourage consumers, while we’re still in this environment, to do that and create a road map to achieve their goals.”
About Shelly Kavanagh
Shelly Kavanagh is Senior Vice President, Director of Retail Delivery for WSFS Bank. Prior to her current role, Kavanagh served WSFS as Director of Retail Strategy, Regional Manager, Retail Program Manager, and Small Business Relationship Manager. She brings more than 16 years of experience in banking.