For families receiving the EITC, this is generally the largest one-time payment they will see all year. Although many families may need or want to use this money to pay bills or make specific purchases, the refund can potentially be used to help families save and/or begin building assets for themselves. Below are some resources regarding asset building strategies.
NEW! Assets Platform Launches to Bring You A Wide Variety of Program Resources
The new Assets Platform offers free asset building program resources at the click of a mouse. It’s free! Resources cover debt and credit counseling, housing and foreclosure prevention, financial education, and more. Developed by the Aspen Institute, to link to the Assets Platform go to AssetsPlatform.org
NEW! Asset Building Products & Practices Resource Guide
The National Community Tax Coalition (NCTC) collaborated with members of its Asset Building Working Group and VITA programs in the field to produce the 2008 Asset Building Products & Practices Resource Guide. By consulting the guide, interested programs can find descriptions of asset building products and practices, information on successful asset building strategies during the tax season, and additional resources for supporting their work. The first edition of the guide features products and practices with a proven record of success at VITA sites.
To access the guide, go to http://www.tax-coalition.org
Then go to the resource library (signing up is free) and follow the link to "financial services” in the left-hand sidebar and then to "asset building initiatives."
Strategies to Link Your Tax Campaign to Asset Building
Another asset building guide from EITC Carolinas.
Money Smart: A Free Financial Literacy Curriculum from the FDIC
The Federal Deposit Insurance Corporation (FDIC) has created a comprehensive financial literacy curriculum which you can order free on-line.
Individual Development Accounts (IDAs)
Individual Development Accounts, or IDA’s, are matched savings accounts that help low- and moderate-income individuals and families save money and build assets. IDA’s are generally used to help people save for the purchase of a home, pay for education, or start a small business. The EITC and IDA’s can make a powerful combination for assisting low-income families to build wealth.
For more information about IDA’s, visit the websites listed below.
North Carolina Saves
As a partner of the America Saves Campaign, EITC Carolinas works with a collaboration of organizations to help individuals and families save and build wealth. NC Saves assists with paying down debt and saving for education, retirement or to purchase a home. For more information, contact the IDA and Asset Building Collaborative of North Carolina at (919) 341-6418.
North Carolina’s 529 National College Savings Program
North Carolina’s 529 savings plan is a savings account designed to help families put money aside tax free to pay for college tuition. These accounts can be opened by almost anyone and require a relatively small opening contribution. A variety of savings schedules can be designed to meet individuals saving needs. For more information visit: www.cfnc.org/savings/cv0021.jsp
Credit Counseling
Many VITA sites are now helping tax site customers with debt and credit issues, either on-site or as a follow-on activity to tax preparation. Fiscal Progress, a credit counseling organization in Raleigh, NC, has written a handbook for VITA programs interested in helping customers with credit and debt challenges.
Tax Site Handbook for Working with Credit Reports
Refund Splitting
This year, tax filers can split their tax refunds into up to three different bank accounts. This can make it easier for families to "spend some, save some." For more information, marketing tools, and an on-line split refunds forum, go to the Doorway to Dreams website: D2D
Additional Asset Building Resources On The Web