Asset Poverty in the City of Chicago Assets are at the Core of the American Dream Having a home, a savings account, a retirement account, a college degree—these are the building blocks of financial stability for all residents. Accumulating these basic assets are the essence of economic security and mobility in America.
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Assets help families ge gett ahead and ensure that there is something to fall back on during hard times.
Over 90% of the federal and state tax-code based asset-building incentives (e.g. home mortgage deductions) go to households making over $50,000 per year, 1 meaning that 2,190,009 households in Illinois are left out of many federal asset building opportunities. 2
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Asset poverty weakens a family’s ability to weather unexpected events such as job loss lo ss or prolonged illnesses, which can often push them into hardship.
Asset Poverty is Different from Income Poverty ·
Income poverty indicates a family’s income falls below the established threshold to cover the costs of necessary living expenses.
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Asset poverty highlights a family’s lack of the savings or a financial cushion to sustain temporary financial set-backs—loss of a job, income reduction.
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When families lack a solid asset base, their children are at a serious disadvantage for getting ahead.
Asset Poverty exceeds Income Poverty
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Families are 2.9 times more likely to be asset poor than income poor.
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Latinos are 3.1 times more likely and African-Americans are 2.3 times more likely to be asset poor.
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Families and individuals who rent are 3.1 times more likely to be asset poor.
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Parents with children at home are 3.2 times more likely to be asset poor.
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Adults under the age of 35 a are re 3 times more likely to b be e asset poor.
Assets Are Important for Future Generations Assets have hav e positive impacts on people and foster many of the characteristics we would like to see in our children Research has shown that building assets:3
Supporting and Building Assets Creates a Stronger Illinois! As savings are invested i nvested in education and training, homeownership, and small business ownership, Illinois will benefit from:
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Creates an orientation toward the future Increases confidence and self-sufficiency Encourages long-term planning Improves general well-being Stimulates the development of more assets
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A more prepared workforce Increased financial security More stable communities Increased tax revenue Less dependency on government benefits and charity
www.illinoisassetbuilding.org
Data for the City of Chicago Category - by household
Total Housing Tenure Homeowners Cost burdened (over 30% of income spent) Not Cost Burdened Renters Cost burdened (over 30% of income spent) Not Cost Burdened Race White Black Asian Latino Native Education Less than a high school degree High school degree Some college, including Associates Degree Bachelors Degree Advanced degree Age Under 35
35-44 45-54 Over 55 Family Composition Married No children at home Children at home Single female No children at home Children at home Single male No children at home Children at home Income Status In Income Poverty Not in Income Poverty Income Quintiles Lowest Second Third Fourth Highest Employment Status Employed Unemployed Not in the labor force Disability Status With work-lim work-limiting iting disability Without work-lim work-limiting iting disability
This fact sheet was produced by the Heartland Alliance Mid-America Institute on Poverty in partnership with the Illinois Asset Building Group. All asset poverty data derived from: Wertheim, S. (2008). Local Asset Poverty Index for Illinois. San Francisco: Asset Policy Initiative of California. 1. 2. 3.
Center for Social Development. (n.d.). Why asset building, children’s savings accouts, and a universal model? Retrieved on September 9, 2008, from http://gwbweb.wustl.edu/csd/SEED/seed_about.htm U.S. Census Bureau, 2007 American Community Survey. Sherraden, M. (1991). Assets and the poor: A new American welfare policy . New York: M.E. Sharpe, Inc.