Householder Response to the Householder Response to the Earned I - - PowerPoint PPT Presentation

Householder Response to the Householder Response to the Earned I ncome Tax Credit: Earned I ncome Tax Credit: Path of Sustenance Path of Sustenance

• r Road to Asset Building
• r Road to Asset Building

By Sherrie L.W. Rhine, Sabrina Su, Yazmin Osaki, and Steven Y. Lee

The views expressed are those of the authors and do not necessarily represent the

• pinions of the Federal Reserve Bank of New York or the Board of Governors of the

Federal Reserve System.

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STUDY SEEKS TO ANSWER STUDY SEEKS TO ANSWER THE FOLLOWI NG THE FOLLOWI NG

• How are refunds used?

How are refunds used?

• Can the EI TC program be used to

Can the EI TC program be used to bring the unbanked into the financial bring the unbanked into the financial mainstream? mainstream?

• What factors influence a lower

What factors influence a lower-

• income taxpayer

income taxpayer’ ’s decision to open a s decision to open a savings account? savings account?

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CONCLUDI NG REMARKS CONCLUDI NG REMARKS

• Unbanked consumers are more likely to

Unbanked consumers are more likely to

• pen a savings account
• pen a savings account
• Opening an account is positively related to

Opening an account is positively related to tax refund size tax refund size

• Nonprofit organizations can and do play an

Nonprofit organizations can and do play an important role in helping to: important role in helping to:

• move the unbanked into the financial

move the unbanked into the financial mainstream mainstream

• facilitate asset

facilitate asset-

• building behavior

building behavior

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FUTURE RESEARCH FUTURE RESEARCH 2004 TY STUDY UNDERWAY 2004 TY STUDY UNDERWAY

Follow Follow -

• up survey

up survey — — Longer Longer-

• term implications

term implications Control survey Control survey — — Baseline comparison Baseline comparison Enhancements Enhancements — — Tax prep process Tax prep process and survey questions and survey questions