California Asset Building

Anne Stuhldreher is a Senior Research Fellow with the Asset Building Program at the New America Foundation. She writes about social and economic issues for outlets such as the Los Angeles Times, San Francisco Chronicle, NPR, and academic journals. Previously, Anne was a Senior Policy Advisor to California Governor… more

Americans can't save. They rank it right up there with -- oh, cleaning out the closet. Recent research confirms that the national savings rate in the United States dipped below zero percent in 2005 and stayed there for the better part of the year. The last time that happened was during the Great Depression.

For most of us to save money, someone else needs to do it for us. That's why so many of us have our employers deduct money… more

New research reveals that California is dead last in bringing home the country's largest resource for working-poor families. By April 17, hundreds of thousands of Californians will miss out on applying for the Earned Income Tax Credit (EITC), a source of sizeable refunds that give a financial boost to those at the low end of the pay scale. Golden State residents leave almost $1 billion in federal funds unapplied for. California families pay a big price when they leave these… more

California first lady Maria Shriver, John Edwards and other political luminaries have converged on Los Angeles for a summit on California poverty. The organizers asked speakers to present ways to help California's poor that are "innovative, practical and achievable."

That's a tall order, but it's a timely one. California is at a crossroads in how it assists its less fortunate residents. We can limit ourselves to the old tools and policies. Or California can lead the country in the democratization… more

To encourage savings, California state income tax forms should be amended to allow households to split their tax refund and direct portions to up to three accounts. The income tax forms would need to be changed to include three "boxes," where tax filers could input account numbers to which they could direct parts of their refunds. Currently, there is only one "box," on the form, allowing tax filers to direct their refund to only one account. New research indicates this… more

In each era of modern American history, California has been at the forefront. It emerged from the Depression and World War II as the nation's archetype of the suburban middle class. It marked the end of government expansion with Ronald Reagan and Proposition 13. And it ushered in the age of technology, as the birthplace of Apple, Intel and Hewlett-Packard.

Californians are still willing to push the envelope, as they demonstrated with the unprecedented recall of a governor in 2003… more

In a recent speech, Federal Reserve Chair Alan Greenspan noted, “Today’s financial world is highly complex when compared with that of a generation ago. Forty years ago, a simple understanding of how to maintain a checking and savings account, at local banks and savings institutions may have been sufficient. Now, consumers must be able to differentiate between a wide range of financial products and services, and providers of those products and services.” While the population as a whole generally lacks… more

California has the opportunity to make 529 accounts more attractive to low- and moderate-income families by providing a match for savings they put towards a college education.

One of the most common myths in economic and poverty policy is that low and moderate-income people can’t or won’t develop financial assets. However, evidence from a wide variety of successful pilot projects from around the U.S. shows that, like wealthy families, low-income families can and do save when appropriate incentives and savings products are in place. Tactics like integrating savings tools into social support programs, providing financial education, matching savings, and even simple changes like allowing a savings check-off… more