Matched Savings: Building Wealth and Economic Mobility
The Matched Savings Coalition leads the advocacy efforts for MA’s Matched Savings Bill
Co-led by United Way of Massachusetts Bay and The Midas Collaborative, the coalition brings together advocates, practitioners, and those with lived experience to advocate for the Matched Savings Bill, SD.2106; HD.3851 which allows participants to save with up to a 4:1 match to put towards twelve goals such as a down payment on a home, small business, education, payment on existing debt, moving cost, and others. Matched Savings empowers participants to be financially independent.
Want to stay informed on Matched Savings and other advocacy opportunities with United Way? Sign up for advocacy alerts.
What is matched savings?
Matched Savings, also known as Individual Development Accounts (IDAs), is a type of asset-development program.
More well-known anti-poverty programs like SNAP and TANF focus on stabilizing income to meet current or short-term needs, while asset development programs are future-focused to help participants to experience upward economic mobility, strengthen financial security and build wealth over time.
Examples of assets are endless. They include bank savings accounts, which is the focus of this bill. But assets also include financial investments (e.g., stocks, bonds and mutual funds), real estate, personal property (e.g., a car), retirement account (e.g., 401Ks) and pensions. From an anti-poverty lens, the idea is that by accumulating and having assets, individuals will have sufficient money to pay off their debts and sustain their current lifestyle.
Assets are more than an accounting term. For many people, it gives a feeling of being secure. Assets give people peace of mind.
What is the bill?
Sponsored by Senator Eldridge and Representative Fluker-Reid, SD.2106; HD.3851, will create a state funded matched savings program.
The bill will create a program, which will be available to people who are below 80% area median income. Participants will be entered into a program where they will be able to save with contributions are matched up to 4:1.
The cornerstone of the bill is that it empowers participants to make their own financial decisions. After graduating, participants can use their savings on a wide range of wealth building activities, including, a down payment on a home, higher education for themselves or a dependent, and purchasing a car or other forms of transportation.
Additionally, participants will be enrolled in financial coaching sessions while in the program; giving participants the skills and financial know how to continue saving post graduation.
We are excited to launch into this new session with renewed focus on Matched Saving with a new House lead sponsor Representative Fluker-Reid. She brings deep experience with delivering results to communities across the state and ensuring that community voice is embedded in her legislative work. As a coalition, we are thrilled to have her lead our House side efforts. The Matched Savings bill has been given docket numbers, SD.2106; HD.3851, and the coalition has begun its co-sponsorship outreach. If you want to support this effort, please sign-up for United Way of Massachusetts Bay policy alerts below.
