NEW ORLEANS – With inflation continuing to put pressure on budgets and South Louisiana residents contending with high insurance, home repair and hurricane preparedness costs, Credit Human Federal Credit Union is promoting what it calls “providential spending,” a strategy of making planned expenditures intended to prevent larger costs later.
Credit Human said the approach grew out of financial literacy discussions it has held with nonprofit partners including Son of a Saint and HRI Community Resources. The credit union said participants have raised concerns about persistently high costs for everyday expenses.
“In certain instances, the most effective way to save money is to spend it,” said Jennifer “J.J.” Jaskierny, operations manager for Credit Human in New Orleans.
“Financial stress creates a reactive mindset that can actually lead to poor financial decisions,” Jaskierny said. “When you’re constantly anxious about money, you’re more likely to be impulsive instead of planning ahead. Understanding how proactive investments can mitigate or prevent crisis helps people make more stable, long-term decisions. We just need to create the space for that to happen.”
For example, Jaskierny said, rising electricity and vehicle maintenance costs can make households reluctant to spend money on upgrades or improvements. U.S. electricity prices were 4.2% higher in July than a year earlier, while motor vehicle maintenance and repair costs increased 6.6%, according to the Bureau of Labor Statistics.
Credit Human describes providential spending as intentionally spending money on expenses that could reduce future costs or make household finances more predictable.
Credit Human – Providential Spending
The credit union identifies several areas where households could consider investing in providential spending:
- Home Energy Efficiency – Investments in energy-efficiency improvements or solar power may reduce household utility costs. Credit Human offers sustainability loans that can be used to finance qualifying home improvements.
- Reliable Transportation – Purchasing a more reliable vehicle may reduce repair expenses, improve fuel efficiency and help workers maintain consistent transportation to their jobs.
- Insurance Optimization – Paying for appropriate insurance coverage can reduce the risk of larger out-of-pocket costs following accidents, storms or other covered events.
- Hurricane Preparedness – Storm-resistant improvements such as reinforced roofing, impact-resistant windows and proper drainage can reduce the risk of costly storm damage, while qualifying mitigation improvements can also reduce homeowners insurance premiums. Louisiana offers grants of up to $10,000 to help eligible homeowners upgrade roofs to the FORTIFIED Roof standard, which can qualify homeowners for insurance premium discounts.
- Preventive Health – Spending on routine health care, mental health services or fitness can help households address health needs before they become more serious or costly.
Credit Human also points to research published in the Proceedings of the National Academy of Sciences examining whether spending money to save time is associated with greater life satisfaction. The study surveyed more than 6,000 adults across four countries and found that people who spent money on time-saving services reported greater life satisfaction.
The credit union has also emphasized emergency savings as part of its financial wellness efforts. According to Bankrate’s 2025 Emergency Savings Report, 41% of U.S. adults said they could cover a $1,000 emergency expense using savings.
Credit Human said providential spending builds on that principle by encouraging households to address predictable expenses before they become larger financial burdens, potentially reducing reliance on credit cards or other borrowing when unexpected costs arise.
“The key distinction is intentionality,” Jaskierny said. “Saving has been reduced to merely ‘not spending’ for many, which is unfortunate because there are certainly cases where spending strategically can improve both financial health and quality of life.”
