Session: Financial Capability and Asset Building for Vulnerable Populations (Society for Social Work and Research 22nd Annual Conference - Achieving Equal Opportunity, Equity, and Justice)

Financial inequities and poverty undermine the well-being of a significant number of families with children worldwide. Economists suggest that the effects of rising financial inequalities and low savings are exacerbated by pressure to keep up with growing consumption fueled by increased access to credit. This complex dynamic continues to create a vulnerable environment for families.

In the last several decades, there have been important gains in knowledge concerning the effects of asset building programs among low-income families. Most notably, there have been advances in knowledge concerning the effects of matched savings programs such as Individual Development Accounts (IDA) and Children Development Accounts (CDAs), including improvements in future orientation, self-efficacy household financial stability and educational outcomes.

A key component of these programs is financial education. Research suggests that families with lower incomes and lower educational levels score poorer on surveys and tests assessing financial knowledge. Families must also have access to resources and services that guide them in making sound financial decisions. The combination of financial knowledge and access to institutional opportunities is known as financial capability. Programs that offer matched savings programs are designed to provide financial education as well as incentives that encourage participants to save and think about future financial decisions. Research indicates that financial education interacts with other offered incentives to increase savings among participants in these types of programs.

Studies on matched savings programs have shown a range of designs and objectives to best fit the needs of a variety of participants. More research is needed to determine the desirable mixture of incentives that produce the best results for each program. This symposium provides evidence from four studies that analyzed matched savings programs in four distinct programs. The first paper, Universal Child Development Accounts Have Positive Impacts for Head Start and TANF examines the financial and non-financial effects of CDAs on Head Start and TANF families. Results indicate that the CDAs do have a positive impact on several outcome variables. The second paper, Integrating Financial Capability Services in the Head Start Program: An Example of the ASSET Project in a Midwestern Metropolitan Area, tests a financial capability program that includes financial counseling, financial education and a matched savings account. Outcomes show that participants experienced increased financial knowledge, improved financial attitudes and behaviors. The third paper, Financial Capability Training and Coaching for Head Start and TANF Participants, examines the outcomes of a financial capability training that includes a coaching component for families receiving benefits from the Head Start program and TANF. Results suggest participant's financial knowledge increased for both participants in Head Start and TANF. The final paper, The impact of the Hope Growing Account program on the Participants' Economic Well-being in South Korea, assesses the impact of a government sponsored matched savings program in Korea. Results suggest program incentives provided helped some participants increase earnings and improve their income poverty status. The outcomes of these four papers discuss important policy and practice implications on program structure and incentives.