Building Savings, Ownership, and Financial Well-Being: First- and Third-Year Assets for Independence Program Randomized Evaluation Findings in Context

Building savings is key for individuals and families to protect and improve their financial well-being. Even small amounts of savings can increase financial security; households with a savings cushion of only $250 to $749 are less likely to be evicted, miss a housing or utility payment, or receive public benefits after an income shock (McKernan et al. 2016).1 And savings can help families build additional wealth, making it possible for them to invest in assets such as a home or small business. Many families with low incomes, however, lack savings or good opportunities to save, leaving them financially vulnerable and with limited ability to invest in their futures. To address this disadvantage, a range of policies and programs, including incentivized savings and assetbuilding programs, seek to support savings, reduce hardship, and build assets for families with low incomes.