Create opportunities for Illinois families to build savings and accrue assets so they not only get by, but get ahead.

The Self-Sufficiency Standard illustrates a bare-bones budget that only allows for families to meet their basic needs. For a family living right at self-sufficiency, economic stability is precarious; just one seemingly minor incident – a car breaking down, a tooth needing to be pulled - can set a family on a downward spiral of tardy payments, late fees, ruined credit, and eventually even large consequences like eviction. In order to be truly economically stable, families must build a financial cushion to fall back on for emergency expenses and to help them move toward economic prosperity.

For lower-income families, there are many barriers to saving, such as high initial deposit requirements for savings accounts, that often have the effect of turning people toward alternative products. Few regulations exist on alternative products to protect those without less than perfect credit from the traps of predatory lending. Low-income families need the support of public policies that promote asset building so that all Illinoisans may participate in and benefit from our economy:

• Create asset-building opportunities for Illinois families and communities through the expansion of matched-savings programs, financial education incentives, and children’s savings accounts for all born in Illinois.
• Protect consumers from financial products that erode financial stability and ensure they are fully informed by further regulating predatory lending (payday loans and longer-term installment loans), limiting credit card marketing to college students, clarifying risky aspects of mortgages, and creating transparency in the mortgage lending process.
• Promote the development of financial products – like no-fee savings accounts - that will give low-income individuals the opportunity to participate in mainstream financial services and build the skills to build assets for the future.

The Social IMPACT Research Center's Illinois Self-Sufficiency Project is made possible through the generous support of the Grand Victoria Foundation and the Chicago Foundation for Women.