Asset building seeks to empower low-income households to acquire assets, such as a home, a business, an education, and savings for retirement and other life goals. Asset building promotes financial empowerment and the building up of assets through both policy and program initiatives. Research has demonstrated that parental financial assets, such as household savings, are positively associated with the cognitive development of school-aged children.
One promising asset-building strategy offers Individual Development Accounts (IDAs) or Child Development Accounts (CDAs) that provide matching funds to help families save for the future. Philadelphia should follow the lead of San Francisco by offering CDAs to all public school kindergarten students. See here for more information.