Page 1 Helping Low Income Families Build Assets Remarks by Carmen R. Nazario Assistant Secretary for Children and Families US Department of Health and Human Services Second Meeting of Ministers and High Authorities of Social Development July 8-9, 2010 Cali, Colombia

Page 2 Definition of Asset Building: Engaging in long-term saving and investment behavior to increase economic independence Fundamental premise that underlies asset-building is that income supports alone may not be enough to enable a family to become economically self- sufficient over the long-term

Page 3 Partnerships with State and Local Governments, non-governmental organizations, and private sector are critical to success of asset-building

Page 4 Components of Asset Building in the US Asset-Building Strategies under way in the US Research and Evaluation in the field

Page 5 Key Components of Asset Building in US Financial Literacy education and training –Need information and skills to make good decisions regarding: how to do a monthly budget, how to save for purchase of home, for university education, or for start-up or expansion of small business Access to Mainstream Financial Services, i.e. banks, credit unions –Families that use banks, and credit unions, are more successful at planning and saving.

Page 6 Key components of Asset Building in US Credit and Debt Counseling Information on how to manage money, i.e. how to pay off credit card debt, how to borrow wisely and how to pay back loans Access to Matched Savings Accounts called Individual Development Accounts (IDAs) Definition: A savings Account for lower income individuals used for a specific purpose such as education, purchasing a first home, or starting or expanding a business.

Page 7 Asset-Building Strategies Underway in the US The Federal Government is leading some aspects of the work on asset building strategies, and state and local governments and private foundations are taking the lead in others.

Page 8 Research on Asset-Building in the United States Asset-building and Individual Development Account policies have been supported and partially driven by positive research findings about their effectiveness as poverty-alleviation strategies

Page 9 Resources HHS Administration for Children and Families CFED Center for Social Development, American Dream Demonstration & ion.aspx ion.aspx New America Foundation – Assets for Independence Resource Center –