In Australia, Matched Savings in Times of Crisis

It took us a little while to catch this, but Australian Prime Minister Kevin Rudd has announced a plan for low-income earners affected by the financial crisis that includes a matched savings component.

 

The matched savings program is an extension of SaverPlus, which was developed by ANZ Bank and the Brotherhood of St. Lawrence in order to help those on low incomes establish a long-term savings habit. The participants set a savings goal, and receive financial education and other support in reaching the goal. Once the goal has been reached, ANZ matched their savings dollar-for-dollar, up to $500.

 

$4.5 million will be allocated to the extension of SaverPlus, reaching an additional 7,600 participants in 60 communities.

 

The Asset Building Program, along with the Global Assets Project, have been involved in advancing matched savings policies and programs both in the U.S. and abroad. Here’s a sampling:

 

The Saver's Bonus, a federal policy proposal put forward by the New America Foundation that would provide a dollar-for-dollar match up to a total of $500 in matching funds for low- and moderate-income tax filers who save a portion of their tax refunds

2-pager Saver’s Bonus (federal proposal)

 

Promoting Savings as a Tool for International Development—on matched savings in the developing world, with a focus on the World Council of Credit Unions’ model in Veracruz, Mexico.

 

We’ve also written quite a bit on children’s savings account proposals that likewise call for a match component (see our most recent policy paper), and the Global Assets Project is currently involved in the planning of a CSAs pilot project in Nigeria’s Bayelsa State.