The Ladder

A Blog from New America's Asset Building Program

Savings is the Rock

  • By
  • Reid Cramer
April 16, 2009

Obviously, President Obama has much on his plate these days. In addition to traveling the world, drafting a budget, and White House training a new pet, one of his tasks is to communicate with the public. Political scientists have called this using the bully pulpit, where the President stands up and brings attention to an under-scrutinized area just by speaking about it.

As If Saving for College Didn't Seem Daunting Enough...

  • By
  • Mark Huelsman
April 13, 2009

Things I found really, really silly this weekend: This doomsday-sounding article from CNBC titled "529 Plans Won't Cover the Cost Anymore."

Quick synopsis: 529 plans (like investment vehicles everywhere and, say, the global economy) have performed poorly. College is expensive. But, unless you're really lucky/rich, they weren't supposed to fund an entire education anyway. Wait, some 529s offer age-based options and they certainly get you in the habit of saving for college. And, in any economy, you should be looking for scholarships and grants too.

Since this is a blog and not a policy paper, I can say the following:

Umm, duh?

Perhaps this is another case of headlines gone horribly awry, but I feel like the premise of the article is not only odd, but dangerous. Of course many families are unable to save enough in a 529 plan to fund an entire education (which makes the 'Anymore' in the title seem beyond goofy). Of course a student should be seeking out scholarships and any form of aid he/she can find. Of course savers should be more vigilant about their mix of investments in this market.

But why make it seem as though 529s are out of favor for half of the piece, or worse, make it seem like a family shouldn't consider utilizing their many advantages?

Issues:

A 391 Percent Payday Loan -- Not a Good Idea

  • By
  • Reid Cramer
April 13, 2009

I think we can all agree that these are not particularly attractive terms. Of course, the purveyors of these products do not pitch them this way but once you add in the interest and the fees, the full cost of many payday loans becomes outrageous.

Singapore's Central Provident Fund: A National Policy of Life-Long Asset Accounts

  • By
  • Reid Cramer
April 8, 2009

We’ve just released a new working paper that looks at Singapore’s Central Provident Fund, which provides the backbone to that country’s social policy system. Our paper, authored by Vernon Loke (soon to be a freshly-minted Ph.D. from Washington University in St.

Mark Your Calendar

  • By
  • Mark Huelsman
April 7, 2009

Via Blair Benjamin over at the Asset Almanac, there is a very promising upcoming conference in Brooklyn, NY on the impact and potential of child and youth savings accounts, featuring a number of great speakers.

In particular, there should be enriching discussions on the behavioral effects of youth savings, better approaches to college affordability (like, say, progressive 529s!), among other topics.

Issues:

Professor Obama: Toward a Save-and-Invest Economy

  • By
  • Reid Cramer
April 6, 2009

President Obama has been making news on seemingly an hourly basis during his European travels. One such revelation was his acknowledgement that excessive savings in Asia and excessive consumption in America has created trade imbalances that are no longer sustainable.

Saving for College with a Credit Card (And Other Oxymorons)

  • By
  • Mark Huelsman
April 6, 2009

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<![endif]-->Double-Edged Sword (noun): something that has or can have both favorable and unfavorable consequences
(Source: Merriam-Webster Online)

With that in mind, I present to you the Upromise World Mastercard by Bank of America.

On one hand, it's a credit card -- an unfortunate accomplice in creating all-too-high debt levels for far too many families. On the other hand, it's an easy tool to save for college. Moreover, it's a way to stash money (that, well, the cardholder didn't previously have) tax-free into an account.

What's a policy blogger to think?

Issues:

Finding New Alliances to Fight Poverty

  • By
  • Reid Cramer
April 3, 2009


Another Step Forward for Better Credit Card Rules

  • By
  • Reid Cramer
April 1, 2009

Our friends at DEMOS are helping to lead the charge to reform how credit card companies get to charge you. And theya re making progress. Yesterday the Senate Banking Committee passed S.414, The Credit Card Accountability, Responsibility and Disclosure Act ("the Credit CARD Act"). Introduced by Senator Christopher Dodd (D-CT), the bill aims to protect consumers from confusing, misleading, and predatory practices by credit card companies.

A discussion for a comprehensive asset building agenda starts now

March 31, 2009

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