Evaluation of Asset Accumulation Initiatives

This study examines the experience of states in developing and operating special-purpose savings account programs for low-income households. The Food and Nutrition Service (FNS) is interested in the use of special-purpose accounts for the low-income population--especially for households receiving food stamps--as a means of promoting self-sufficiency . These accounts enable low-income persons to accumulate savings for specified purposes such as education, home purchase, home improvement, and business start-up. In many program initiatives, the account holder qualifies for matching funds to enable a more rapid accumulation of savings, as long as the account balances are used for the specified purposes. Such matched accounts are typically called a individual development accounts or IDAs.