Almost half of all Americans are not confident that they could get $2,000 within a month to cover an emergency. This lack of savings can result in financial hardship for families that face sudden crises such as a job loss, illness or injury.
Thirty-five states have laws to create individual development account (IDA) programs to encourage people to save. IDAs are matched savings accounts that are most often used for long-term investments like buying a home, getting more education or starting a small business.
In this edition of the Buzz at State Legislatures (4:27), Qiana Torres Flores of the National Conference of State Legislatures (NCSL) Working Families Project talks about how IDAs work and how states have creatively used this strategy to help people save.