May 7, 2010

Far too many families in America are living from paycheck to paycheck. Nearly 1 in 5 American households owes more than it owns; for women headed households, this percentage increases to 1 in 4 households. One in 3 minority households have 0 or negative net worth. More than 3/4th of low income working families do not have enough assets to finance living expenses for 3 months at the federal income poverty level should they lose their income.

In Illinois, nearly 22% of residents are asset poor and 14% experience extreme asset poverty, meaning they have zero or negative assets. An Illinois resident's average debt is over $11,300. Roughly 24% of Illinois households do not have a checking, savings, or money market account; they rely on high-cost alternative financial services for check cashing, money orders and bill payment.

For many of the clients Heartland Alliance for Human Needs & Human Rights serves, living amid financial insecurity destabilize their families. It also jeopardizes the long-term vitality and resiliency of their communities. The dismal economic forecast for the next few years will only exacerbate these problems - putting financial stress on families already stretching to make ends meet. Lack of savings is a serious issue demanding a solution that not only educates people about appropriate ways to spend and invest, but also includes mechanisms for increasing asset ownership and asset protections.

Heartland Alliance provides leadership to a statewide policy coalition working to create opportunities for the clients we serve to attain economic success. The Illinois Asset Building Group (IABG) is a diverse statewide coalition organized to build the stability and strength of Illinois families and communities through increased asset ownership and asset protection opportunities for all. Made up of community leaders, service providers, researchers, advocates, financial institutions, organizers, and business leaders, IABG seeks to expand asset-building opportunities in Illinois through effective policy and system change. IABG is working on such initiatives as promoting affordable, alternative small dollar loan programs in mainstream financial institutions; reforming asset limits on public benefits programs to end disincentives to savings; developing a policy agenda to end racial wealth disparities; and working with a Governor-appointed task force to create a statewide children's savings account program.

For more information about the coalition, go to www.illinoisassetbuilding.org or contact Chris Giangreco at 312.870.4939.

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