Asset Poverty in Chicago

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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

Demographics 854,297

Income Poverty 18% 155,340

Asset Poverty 42% 362,790 

40% 16% 24% 60% 30% 30%

342,462 137,808 204,654 511,835 255,706 256,129

7% 12% 4% 26% 44% 7%

60,581 100,303 33,833 218,742 374,532 63,210

7% 10% 4% 66% 69% 64%

56,109 89,361 33,718 567,987 592,312 543,702 

42% 35% 1% 22% 0.2%

359,302 298,602 9,711 185,163 1,519

8% 29% 19% 20% 23%

70,110 248,153 160,541 170,854 197,831

29% 54% 34% 52% 55%

244,425 462,014 293,682 441,835 468135 

22% 20% 26% 20% 12%

186,947 171,722 218,242 170,776 106,610

34% 23% 16% 7% 5%

289,405 198,563 133,130 62,045 45,539

57% 52% 42% 31% 20%

483,543 448,470 358,901 266,602 175,079 

36%

304,335

21%

178,503

53%

453,550

26% 22% 16%

225,833 189,871 134,258

18% 16% 17%

149,919 132,645 144,048

42% 36% 29%

358,031 303,774 248,524 

37% 11% 26% 38% 21% 17% 25% 22% 3%

315,386 96,738 218,648 324,739 177,805 146,934 214,172 186,004 28,168

10% 6% 11% 27% 19% 36% 17% 16% 24%

83,088 49,233 98,066 231,093 165,757 310,156 146,877 138,462 202,444

31% 26% 33% 52% 43% 64% 45% 43% 56%

260,835 220,855 278,524 447,500 368,403 543,216 384,486 370,177 478970 

18% 82%

155,340 698,957

100% 0%

854,297 0

65% 37%

558,177 319,366 

20% 20% 20% 20% 20%

170,859 170,859 170,859 170,859 170,859

91% 0% 0% 0% 0%

776,700 0 0 0 0

61% 55% 45% 34% 17%

520,373 471,420 386,384 291,864 143,741 

71% 5% 24%

610,477 41,770 201,856

9% 43% 42%

74,390 371,048 354,951

39% 59% 51%

330,175 504,452 431,928 

17% 83%

141,665 712,632

23% 17%

194,450 147,565

49% 41%

421,858 351,048 

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.  

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