- Low-income families often rely too heavily on costly financial services, By Tim Grant, August 12, 2009, Pittsburgh Post-Gazette: “Millions of low-income families rely on check-cashing companies, money orders and payday loans to handle basic financial needs — costly services that can undermine tight household budgets — even as evidence shows many are receptive to buying on layaway and even contributing to retirement savings plans. ‘In a sense, we are living in the richest nation in human history, yet it’s stunning that nearly 50 million people are living below a living wage,’ said Eldar Shafir, a professor of psychology and public affairs at Princeton University who contributed to the book, ‘Insufficient Funds: Savings, Assets, Credit and Banking Among Low-Income Households…'”
- A government hand in helping the poor save, By Jennifer 8. Lee, August 10, 1009, New York Times: “Should local government help the poor save for a rainy day? Middle-income Americans are already encouraged to save through a variety of government policies such as 401(k)’s and Individual Retirement Accounts. In addition, tax breaks on mortgages encourage home ownership as another means of saving money. These kinds of inducements happen almost exclusively through the tax code and largely bypass the poor. The poor are less likely to own homes or have retirement accounts. And since they pay little or nothing in the way of taxes, tax breaks are not effective incentives…”
Poverty-related issues in the news, from the Institute for Research on Poverty