Joining an Asset Building Program

Abstract

United States anti-poverty efforts traditionally consist of income-based, means-tested policies while wealth promotion generally involves tax code initiatives. Long-established beliefs that underserved populations cannot save money have resulted in exclusionary asset building policies for the poor. Minimal changes in pre-transfer poverty rates have led social workers to examine alternative anti-poverty solutions. This study examined the effects of an Individual Development Account (IDA) savings program on social and economic well-being. Findings suggest that individuals do save when institutional structures are in place and that perceptions of economic strain decrease as savings increase. Implications for future policy, practice, and research are discussed.

Key Words:

• Savings
• individual development accounts
• poverty