A Perfect Match: Tools for Wealth Building That Work
On March 31st, advocates, legislators, and community leaders joined us at the Massachusetts State House to understand the transformative power of asset building programs like Baby Bonds and Matched Savings. The call to action has been ongoing to garner support for these initiatives. Senator James Eldridge, Senate Lead sponsor and long-time advocate of the Matched Savings bill, echoed this sentiment and encouraged continued advocacy to move the bill forward. With over 150 virtual and in-person registrants this event felt abuzz with renewed energy to push these bills across the finish line in this current legislative session.
Hosted by the United Way of Massachusetts Bay, MA Treasury’s Office of Economic Empowerment, and the Midas Collaborative, the panel featured the current Matched Savings bill House Lead sponsor, House Representative Brandy Fluker-Reid, and long-time advocates of both the Baby Bonds (H.48/H.3429/S.2146) and Matched Savings bills (SD.2106/HD.3851). Attendees heard powerful stories and received impactful data from Representative Fluker-Reid, Symone Crawford Executive Director of the Massachusetts Affordable Homeownership Alliance (MAHA), David Radcliffe Policy Director with the New School, and Alayna Van Tassel Deputy Treasurer and Executive Director of the Office of Economic Empowerment. The afternoon kicked off with a warm welcome from Marty Martinez, newly appointed CEO of United Way of Mass Bay. Martinez spoke to the organization’s commitment to advancing financial equity and introduced the legislative focus of the day. Moderated by Julie Demusz of Compass Working Capital, she led the panel through a powerful conversation that focused on the impact legislative action will have on real people across the Commonwealth.
Asset building programs like Baby Bonds and Matched Savings support the growth of generational wealth and when paired together they can provide a path to closing the racial wealth gap. Racial wealth inequality in Massachusetts is growing every day. The commonwealth ranks 45th in the country for homeownership among households of color, an asset class where most Americans hold their wealth (Prosperity Now Scorecard). The Matched Savings bill proposes a solution to close the gap in the form of matched dollars for a wide variety of asset goals paired with financial education. Since 1999, matched savings programs have proven to significantly boost financial resilience among low-to-moderate income participants. According to the Urban Institute’s evaluation of the federally funded Assets for Independence (AFI) Act participants experienced a meaningful increase in liquid assets, providing a critical financial cushion during crises like job loss or unexpected illnesses. This bill asks that our state step up and fill the gap left by the loss of such critical federal support.
The panelists also discussed the introduction of the Baby Bonds bill, which works to address wealth disparities at the intersection of race, gender and ethnicity. Baby Bonds are a powerful tool already being piloted in ten different states to lay the foundation to alleviate generational poverty through significant government investment on behalf of children. Treasurer Deborah Goldberg, who joined the event as a guest speaker, is credited with convening the first Baby Bonds Task Force in 2022. The task force featured a diverse, cross-sector collaboration that worked to identify a pathway to creating a baby bonds initiative in Massachusetts. As she pointed out in her speech, states such as Connecticut and California have all passed legislation – the time for progress in Mass is now. The bill for Massachusetts would ensure eligibility for all children under the age of one who are enrolled in TAFDC or in foster care. The funds saved will be used for assets goals including, but not limited to, activities such as home buying or starting a business.
The message is clear: we have the tools, the data, and an abundance of lived experiences to corroborate the effectiveness of asset-building amongst our most vulnerable populations. Now more than ever we need these policies to bring change to Massachusetts. The Baby Bonds and Matched Savings bills represent a promise to invest in the financial futures of those historically left behind. Let’s keep the momentum going.