ABSTRACT

Many Americans are asset poor. The average American family holds only $3,700 in net financial assets, and nearly one-third of American households operate with zero or negative net financial assets (Oliver and Shapiro, 1995). Half of all Americans have less than $1,000 of assets to invest. Thus, absent any safety nets, the typical family is only about three monthly paychecks away from financial ruin. The low asset levels are not surprising considering the low savings rate (5 percent) of U.S. households and the lack of government support for asset building among the low- and middle-income population.