Savings Program Participation and Outcomes for Hispanics

Low- and moderate-income Hispanics in the United States have traditionally experienced few institutional incentives for savings and asset development and have instead encountered many disincentives. The authors provide a brief review of the various enticements and deterrents for savings and wealth development for traditionally underrepresented groups, with a focus on Hispanics. One of the most recent savings initiatives for low- and moderate-income individuals involves dedicated savings accounts, also known as Individual Development Accounts (IDAs). This study was designed to examine whether IDA program completion supports asset development over time for Hispanics. Results indicate that while there are no statistically significant differences in asset growth between IDA completers and non-completers, IDA program completers did experience more growth on all asset measures. The authors provide suggestions on how to close the racial and ethnic wealth gap for low- and moderate-income Hispanic individuals and households.