The Earned Assets Resource Network is a non-profit designed to help low-income families get some savings. Though based in San-Francisco, various comments on other blogs indicate similar non-profits exist around the country.
The program is not for the wasteful. In fact I don’t think any readers on this sight would be able to qualify. The requirements to get in the program are you must save 5% of your income each month. With an average yearly income of $18,000 for participants (in San-Francisco, the most expensive city on the planet) its shocking they are able to set aside 5%. The average savings rate is 0.6%. That’s you, and you make more than $18,000.
If you qualify for the program, EARN will contribute $2 to your savings for every $1 that you set aside up to $2,000. Potential graduates of the program can walk away about $6,000 richer.
But its not all free money. You have to take financial management classes offered by EARN. I’m sure they range from credit management all the way up to retirement plans and college savings. This way the low income households can climb their way out of the poor house. The savings goal must be planned out too. It might be college, a house, or starting a business. EARN provides all the tools necessary to help those in the program along.
The program is funded entirely by donations, so please throw your money directly into buckets like these, not the pockets of United Way executives.
The Weakonomist Judgment:
This is something I can really get behind for two reasons. The first reason is selfish. If I didn’t have to worry about money, this is the kind of organization I would either start or want to work for. Teaching people who really need to know about investments and personal finance. Bono can do his thing over in Africa, I’m going to help the people in my town get out of poverty.
My second reason for loving this program is because its SOOOO un-government like. I hate Welfare and stand by the fact that its not the government’s job to prop up the people. Throw money at the poor and they just spend it, staying poor. A better way of saying it is government programs treat the symptoms. Reward them with money for learning about money, and you don’t have to throw your dollars at them anymore, thus treating the problem. This isn’t me being a snob, its me saying government programs only support the poor like its an incurable disease, EARN is a treatment that will work.
Update: I have since found programs in my area and am researching what I can do to help.
 By The Weakonomist |
The Weakonomist is the founder of Weakonomics. Clicking the picture of the puppy will tell you more about him. If you like what you're reading consider subscribing to the blog, following him on Twitter, and checking out the related posts below. Please consider a donation if you really enjoy Weakonomics. Also keep in mind that nothing I say can be construed as financial advice. |
