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Federal Assets Policy
Action for Children advocates for asset building policies that enable all families to save, build wealth and enter the financial mainstream.
Today, more than 1-in-3 children in North Carolina are born into families that lack sufficient savings to weather emergencies or effectively invest in their children’s futures. To combat asset poverty, encourage saving, promote financial literacy, expand opportunities for young adults and ensure that our nation’s savings and ownership policies assist working-poor families by enabling them to save, build wealth and enter the financial mainstream, Congress should act to pass effective asset building legislation like the Savings for Working Families, Financial and Economic Literacy Improvement and ASPIRE Acts.
Child Asset Poverty by State, 2004
Legislative Information:
Expected and introduced asset development legislation n the 111th Congress includes:
- Savings for American Families' Futures Act (H.R. 1961) would improve the federal Saver’s Tax Credit for contributions made into retirement plans. The bill expands the credit to more middle-income families, establishes a flat 50% match and indexes the contribution limits to inflation.
- Savings for Working Families Act of 2009 (H.R. 2277/S. 985) would make Individual Development Accounts (matched savings accounts that help low-income families build appreciating assets) available to 2.7 million low-income families across the country and expand funding for financial education. In North Carolina, there are 32 local IDA programs in 55 counties, helping people save. From 1999 to 2007, NC IDA account holders saved an aggregate $1.8 million, acquired more than $970,000 in matching grant funds, and purchased an estimated $43.2 million in assets. (Source: North Carolina Department of Labor, IDA Annual Report, 2007.)
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Financial and Economic Literacy Improvement Act of 2009 (H.R. 1645/S. 638) would improve financial and economic literacy education efforts in public schools and institutions of higher learning.
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Focusing Investments and Resources for a Safe Transition (FIRST) Act: An act similar to last session's would enable states to establish IDAs for foster youth to assist them in becoming self-supporting as they transition to adulthood and out of the foster care system.
More Information
