Asset Building Resource List

Center for Social Development's State Assets Policy Pages, State Policy Information & Resources, http://gwbweb.wustl.edu/csd/policy/index.htm

New America Foundation, Asset Building Program,  http://www.newamerica.net/index.cfm?pg=section&secID=14

CFED and asset building, www.cfed.org

“Building Texas Communities: A Guide for Home Mortgage Lending to Immigrant and Low-income Families” Texas Appleseed, September, 2005. www.texasappleseed.net

Jump$tart Coalition for Personal Financial Literacy www.jumpstart.org and www.jumpstartclearinghouse.org  has information and resources and educational materials for youth and young adults. In Texas, there is the Texas Jump$tart Coalition for Personal Financial Literacy www.txjumpstart.org.    

Sherraden, Michael, Assets and the Poor: A New American Welfare Policy. M.E.Sharpe, Inc. 1991, Armonk, New York

Shapiro, Thomas M. The Hidden Cost of Being African-American: How Wealth Perpetuates Inequality. Oxford University Press, 2004

The IBAT Education Foundation, http://foundation.ibat.org, is focused on building financially literate communities by using effective and engaging ways to convey financial education.

 Asset Building Information and Quotes

 “Ensuring that every American has the chance to improve his or her economic circumstances through hard work, saving, entrepreneurship, and other productive activities is essential for building healthy communities and achieving sustainable economic growth.” Ben Bernanke, Federal Reserve Board Chairman, November 1, 2006.

"Financial education is fine as far as it goes, but it doesn’t go far enough unless it includes an asset-building structure, such as checking accounts, savings accounts, credit cards, mortgages, and other banking services.” Robert W. Mooney, FDIC acting deputy director for compliance and consumer protection, American Banker, October 19, 2006.

FDIC Chairman Sheila Barr from an interview on October 18 and published in the American Banker on October 19, 2006 said she envisions alternative products such as small-amount loans taking the place of payday loans, and that she wants to encourage loans and services that automatically put extra funds tied to tax refunds or mortgage payments into a savings account.

An amendment sponsored by Senator Jim Talent R-Mo in the Pentagon reauthorization bill puts a 36% cap on APR, including fees, on credit products sold to members of the military. The bill was signed on October 17, 2006.

 Forty-six percent of households with income under $40,000 are under banked (only a checking and savings account).  Utilize others for payday lending, check cashing, wire transfers, and money orders. “The Latest in Under banked Research”, William McCracken, SYNERGISTIC Research Corp., CFED 2006 Asset Learning Conference.

 The under banked population spends at least $10.9 billion on more than 324 million alternative financial services transactions every year.  Highlights from The Inaugural Under banked Financial Services Forum, July 2006. The Center for Financial Services Innovation.

 The Census Bureau has estimated that the average work-life earnings for a high school graduate working full time year-round would be $1.2 million as compared to $2.1 million for a Bachelor’s degree.

Average Income by Level of Education in the United States: U.S. Census Bureau, “Educational Attainment in the United States: 2004” Looking at population 25 years and over in 2004

n        Some high school no diploma   $18,734

n        High school graduate/GED          $27,915

n        Bachelor’s degree                       $51,206

n        Advanced degree                        $74,602

The U.S. personal saving rate has declined from 10.8 percent in 1984 to zero in 2005. Bureau of Economic Analysis

 For the first quarter of 2006 Texas ranked first in most home foreclosures with 40,236. Florida was second with 29,636.  Data compiled by RealtyTrac.

·          In tax year 2004, Texas Families claimed over $6 billon in EITC and Child Tax Credit refunds. Yet, each year, over one billon dollars in tax credits goes unclaimed by Texas Workers.

·          For every $1 the city of San Antonio invested in outreach, EITC filers claimed $127 in returns, generating a total of $64.3 million in tax refunds from 2003 to 2005.

·          In 2003, Texans took out over 1.8 million high-interest payday loans totaling over $612 million in principal balances.

“Moving Forward: Common Sense Policies to Promote Prosperity for Working Texans, 2006, Center for Public Policy Priorities.

Remittance money from Texas immigrants going back to Latin America for 2006 is estimated to be $5.2 billion.  Over the last two years, Latin American immigrants sending money home on a regular basis has increased from 61 to 73 percent.  The average amount remitted also increased from $240 to $300. Total income for Latin American immigrants is estimated at over $500 billion.  Abut 10 percent is sent home, the other 90 percent is spent in the states and towns where they live, directly contributing to local economies.

 “Sending Money Home: Leveraging the Development Impact of Remittances” Inter-American Development Bank Multilateral Investment Fund.

With changes to its matched 529 (college) plan this year, the NextGen College Investing Plan®, Maine has become the first state to establish universal, progressive children's savings accounts at birth. All Maine residents born after January 1, 2006, are eligible to receive a $50 First Step Grant, with low- and moderate-income families eligible to receive an additional $200 Initial Matching Grant. No other contribution is required to open the account. Accounts must be opened within a year of the child's birth.

New Governor in Ohio Supports Children’s Savings Accounts:  Governor-elect Strickland has proposed the Ohio Knowledge Bank, which would create progressively matched CSAs as a way to improve high school completion rates and transform attitudes about college accessibility.  Under the proposal, when a 529 college savings account is opened for a child, the state would deposit $500 in a parallel Knowledge Bank account for that child and contribute $100 every year thereafter until the child graduates from high school. Additionally, those who qualify for need-based assistance (defined as children in families at 200% of poverty or below) would get an additional $100 per year contributed to their accounts. The state’s contribution could be used for college, certification or other training in Ohio.