New America on Ownership and Assets

What does the bill do? Why is a bill to promote asset building for children necessary? Who is eligible? Will illegal immigrants or children who become citizens get accounts? Will children born before the bill takes effect get accounts? Why do wealthy people get these accounts? Why do poor people who don't pay taxes get accounts? Is it unrealistic to expect those with low incomes to save when they already struggle to get by? How

To promote local economic development, California policymakers should create Banking Development Districts, a proven way to connect lower-income unbanked Californians with the financial products and services they need to enter the financial mainstream and begin to build savings and assets. It is modeled after New York State's successful Banking Development District program.

For the full text of the issue brief, please see the PDF attached below.

What is the Saver's Bonus?

The Saver's Bonus is a policy proposal that would reward low- and moderate-income individuals and families who save at tax time.  Every dollar deposited in a designated savings product would be matched with an additional dollar, up to a maximum of $500 annually.  Tax filers would make or report contributions to an eligible account on their federal income tax return and the bonus would then be transferred directly to the designated account.  A variety of restricted savings products would be eligible for… more

The California Employee Savings Program creates a voluntary, universal, portable retirement account for California workers who do not have access to a workplace retirement savings plan. It would give six million California workers and their families an opportunity to have their own workplace retirement savings plans to supplement their basic Social Security benefits. The California Employee Savings Program would also give hundreds of thousands of California small businesses an easy, low-cost, voluntary way to offer a retirement savings plan to their

The CA Workforce Mobility and Savings Initiative, reforms the asset limit in the California Work Opportunity and Responsibility to Kids (CalWORKs) program, to encourage low-income families to build the savings they need to permanently exit welfare. The measure repeals the $2,000 asset limit in CalWORKs for current recipients and raises it for new applicants from $2,000 to $7,000 while also eliminating the $4,650 vehicle limit. By reforming the asset limit, this measure restores the stated goal of the CalWORKs program by assisting families in achieving

Overview

The current economic downturn, triggered in part by excessive household debt and deflating housing prices, underscores the central role asset ownership plays in the economic security of California families and the broader economy.  Yet, half of all Americans currently have few or no assets, in part due to policies that encourage savings and wealth accumulation that benefit the upper half of earners.  The purpose of New America's Asset Building Program, is to significantly broaden savings and assets ownership in America,

Title of the Bill

The Americans Saving for Personal Investment, Retirement, and Education Act of 2009 ("The ASPIRE Act of 2009")

Purpose of the Bill 

To encourage savings, promote financial literacy, and expand opportunities for young adults by establishing a Lifetime Savings Account for every newborn child.

Lifetime Savings Accounts

The Potential of 529 College Savings Plans

At a time when low-income students are underrepresented in higher education and the cost of attendance is becoming increasingly unaffordable, 529s have the potential to address issues of college readiness, access and completion.  College savings can help make higher education more affordable, and have the potential to change aspirations and behaviors of both students and their parents.  Research from the asset building field has shown that even a relatively

Over the past two decades, policymakers, academics, and others have pursued an array of policies and strategies to help lower and middle income households build savings and assets and access reasonably-priced financial products at mainstream institutions. While some progress has been made, there have been few advances in delivering a high-value, affordable financial product at scale.

When President Clinton signed the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, he changed the moral debate over poverty. No longer could Ronald Reagan's heirs wave help-wanted ads and ask sarcastically why those welfare queens couldn't find a job when there were so many to be had. Now everyone was working, training for a job, or looking for one. It was the law, after all. With benefits now linked to work, progressive politicians could have argued for a… more

ABSTRACT: This policy brief makes the case for linking conditional cash transfers to savings as a two-pronged poverty reduction strategy of supplementing income and building productive assets, while increasing effective financial inclusion of a given population. While conditional cash transfer (CCT) programs and policies have proven effective in achieving certain poverty alleviation goals, such as better health and education, only recently have we begun to explore the potential of CCTs to enhance economic inclusion and poverty reduction through wealth accumulation.

Over the past two decades, policymakers, academics, and others have pursued an array of policies and strategies to help lower and middle income households[i] to build savings and assets and access reasonably-priced financial products at mainstream institutions.  While some progress has been made, there have been few advances to delivering a high-value, affordable financial product at scale.

In recent years, policymakers around the world have been attracted to the concept of integrating a consideration of assets into policy efforts aimed at securing and enhancing social welfare. The theory behind asset-based welfare policy suggests that while income facilitates immediate consumption, social development over the long-term occurs primarily through asset accumulation and investment (Sherraden, 1988, 1991). Assets may not only provide individuals with the ability to exert control over resources that can increase their financial security, they might also… more

In Califonia's current legislative session, the Asset Building Program is advancing a comprehensive legislative package of state policy intiatives to broaden savings and ownership opportunities for Californians. … more

AutoSave is a unique savings plan that automatically diverts through payroll deduction a small amount of post-tax wages into a non-tax-advantaged savings account. AutoSave’s design incorporates key factors that encourage saving, such as facilitation of automatic transfers to a savings account through an existing system (payroll deduction), and the use of strategies to make putting money into a savings account—rather than not saving—the preferred option.

Overview

U.S. Savings Bonds are a convenient, secure, and low-cost product that facilitate savings.  Today, an estimated 55 million people hold U.S. Savings Bonds. Bonds retain a reputation as an easy-to-use and trusted brand-- even though they have not been actively marketed since 2003. It is a product that is especially attractive to small, first-time, or shorter-term savers. Bonds may be purchased for as little as $50 and redeemed as early as twelve months after purchase. They are backed by the U.S. government-- so there is no risk

We are in the midst of a period of intense and frustrating contradictions for our country in general and for community finance.  Just take these examples:

Background on 529 college savings plans

In 2001, the Internal Revenue Code authorized college savings plans (529 plans) as a tax-advantaged savings tool. In a 529 plan,[1] individuals save money in an account that is dedicated for future college expenses of a beneficiary. States administer 529 plans, and offer a limited selection of funds with a range of risk and return characteristics.[2] In

The ASPIRE Act - Universal, lifelong savings accounts at birth The ASPIRE Act promotes lifetime savings, financial literacy, and opportunities for all young adults by establishing a progressively funded savings account for every child born in America. Each account receives $500 at birth. Households below national median income receive up to an additional $500 at birth and

Introduction/Background

In recent years, the role that savings and assets play in shaping people's lives has increasingly captured the attention of researchers, policy analysts and elected officials. Their interest in savings and building wealth has grown along with an increased awareness of specific policy tools and interventions, such as matched savings accounts available for lower-income workers. The launch of the SEED Initiative in October 2003 was an important marker in this process because it introduced the