Asset Policy Index

Financial Asset Building

The financial asset-building policy measures in the Report Card gauge state support for policies that lead directly to the accumulation of financial assets. This includes policies that help to increase pre- and post-tax income so that working families can save, policies to directly incentivize the accumulation of assets, and policies that reduce disincentives to saving. These policy measures are included in the Report Card because research12 shows there are a number of determinants in asset accumulation in low-income households. Among these are 1) limited income needed to meet current consumption needs and 2) discriminatory government policies, which either fail to incentivize or actually create barriers to saving on the part of low-income households.

Affordable Homeownership

Homeownership is the single largest source of equity for American households. Public policies, such as home mortgage interest deduction, have played a pivotal role in incentivizing homeownership at the federal level. A number of state policies have also been implemented to help those with lower incomes become homeowners.

Human Capital Development

The human capital development policy measures state policies that assist in the development of human capital, including policies that focus on low-income families and families living in low-wealth communities.

Small Business Development

The small business development policy measures look at state policies that facilitate business ownership through access to capital for low- and moderate-income entrepreneurs.

Bank Access

The bank access policy measures in the Report Card assess state policies to ensure equal access to basic financial services, such as making deposits and receiving loans. One of the basic factors that determines the ability of low-income households to accumulate assets is access to mainstream financial products and services.

Wage Protection

The wage protection policy measures look at policies that supplement or replace a portion of wages when a worker leaves employment due to job loss, injury, or childbirth. These are crucial supports that allow households to manage work changes or sudden events without depleting assets or increasing debt.

Health Insurance

The health insurance policy measures examine policies that expand or increase health coverage. Health care costs can be some of the largest expenses faced by a household and often occur without warning. In fact, a study found that medical bills and other financial effects of illness contributed to nearly half of the more than one million personal bankruptcy filings in the United States last year. Despite the huge risk to family finances from medical emergencies, nearly 44 million Americans are without health insurance, and a large proportion of these are the working poor. According to the Center on Budget and Policy Priorities, more than one third of working families with incomes below 200% of the poverty level have no insurance coverage, and almost half of working families below 100% of poverty are uninsured.

Health insurance is a significant issue for our entire health care system, but its importance to asset protection cannot be overstated. Often, public policies to increase health coverage have been targeted to children without recognition of the impact on children when their parents are not covered-both in terms of health and household income. No matter what the household composition, though, health care costs can completely wipe out whatever assets an individual may have accrued as well as create staggering debt that can lead directly to bankruptcy.

Property Protection

The property protection policy measures assess state policies that directly protect homeowners against the loss of home equity due to unscrupulous lenders or an inability to acquire homeowners’ insurance.