What’s the best way to help low-income families improve their financial lives? One approach is “microsavings,” which are small deposit accounts that can be an incentive to save more for future goals. Research shows that these small, long-term accounts not only build assets but also promote the social and intellectual development of low-income children. In this podcast, I talk with Professor Michael Sherraden of Washington University in St. Louis about another concept of savings accounts called Individual Development Accounts (IDAs), and their potential impact on poverty in the U.S.
Listen to the podcast here.