New York Times on Check-Cashing and Payday Lending

Last Sunday’s New York Times Magazine had a great article on the check-cashing and payday lending industry, exploring what makes it succeed in the market despite the exorbitant fees.

An interesting read for anyone trying to deliver responsible financial services for the poor.

Asset Building in the New Administration

It’s hard to know how asset building policy will fare in a time of financial crisis, and when major priorities like ending the war in Iraq and insuring the uninsured will likely require enormous political capital by the new president in order to be implemented. My hope is that the need to strengthen savings opportunities and incentives for low- to moderate-income families will be recognized in this environment when we have seen what over-reliance on debt has caused, and that some important asset building programs can be incorporated into broader measures addressed at restoring the fundamentals of our economy. Reid Cramer of New America Foundation has some suggestions along these lines. And the idea of expanded support for IDAs through something like the Savings for Working Families Act would certainly be a candidate.

The choice of Rahm Emanuel as White House Chief of Staff means that a major advocate of asset building policy will be President Obama’s right hand for guiding executive and legislative initiatives. Perhaps that will more than make up for the loss of his voice in the House, where we will need to continue to cultivate more advocates for asset development. In the 110th congress, Emanuel was an original sponsor of the Savings for Working Families Act , the ASPIRE act, and the Retirement Savings for Working Americans act, which is quite a trifecta. None of those bills passed, but support for such measures seems to continue to grow.

Perhaps all of us in the asset building field should send notes of congratulation to Rahm Emanuel, thank him for his past support of our work, urge him to keep that enthusiasm alive in the White House, and offer our help and support with the challenges that lie ahead.

Asset Building with Motley Fool’s Foolanthropy Contest

If yesterday’s voting wasn’t enough for you, here’s a nice opportunity to vote for asset-building matched savings opportunities for young people, courtesy of CFED (but act fast):

We are in a close race with only hours left to go! Don’t miss your chance to help CFED win Foolanthropy 2008.

CFED needs your vote! Please choose CFED on the Motley Fool’s Foolanthropy website by 5:00 PM EST today (November 5, 2008).

CFED – the Corporation for Enterprise Development has been chosen as one of four charities by The Motley Fool to take part in its 2008 Foolanthropy campaign. The Motley Fool is asking people to vote for which charity should receive their 2008 Foolanthropy grant. CFED is a national nonprofit organization that has pioneered revolutionary programs that combine financial education with personal savings to help people rise out of poverty. As a result, thousands of young people are realizing dreams they once thought were out of their reach.

Through CFED’s Savings for Education, Entrepreneurship and Downpayment (SEED) program, at-risk youth learn the practical discipline of saving, and receive age-appropriate financial education. Each participant receives an initial deposit of $500 to $1,000, and participant savings are matched dollar for dollar. The proceeds of the accounts are restricted for college, starting a business, or buying a home. Vote for CFED’s SEED program before voting ends today!

If selected, the support given to the SEED program will contribute to matching funds and financial education support to disadvantaged young savers in communities across the country. For instance, $1,000 invested for 18 years at a 6% rate of return yields nearly $3,000. With matching funds, a family that deposits $50 per month to the base can save over $22,000 by the time their child turns 18! Please give us your vote now and make the future brighter for a young saver!

To view videos about the SEED program, visit CFED’s Video Gallery at http://video.cfed.org.

To vote for CFED please visit http://www.fool.com/foolanthropy/2008/10/29/financial-literacy-now-more-important.aspx.

Assets for Artists Picking Up Speed

Here’s a flurry of news about my Assets for Artists project:

1. We’ve set dates for our business planning seminar for Berkshire County artists — November 12 and 19, 4:00pm, in Pittsfield. Details available from Berkshire Creative. (But note the available slots have already been filled.)

2. Looks like we’ll do a CHAPA-certified home buyer training for artists on December 6 and 13, but that’s still tentative. The Massachusetts Fair Housing Center will lead the training, with an assist from ArtHome and a variety of local experts.

3. Berkshire Creative’s Nancy Fitzpatrick and I have been working hard on the fundraising — visiting any semi-solvent bank or credit union in a 30 mile radius. Berkshire Bank Foundation has already come through with a grant (many thanks!), and I’m optimistic about several others. On Friday I also submitted my draft proposal to the Massachusetts Cultural Council’s Adams Arts Program for cultural economic development. (The cultural council should take some blame for this project, since they helped get it off the ground with a planning grant in 2007.)

4. The state’s Department of Housing & Community Development again funded the Midas collaborative’s partnership of IDA programs across the state, which means we’re going to open 4 more home ownership IDAs and 10 more small business IDAs for Berkshire County artists in 2009. We should be able to find another 14 serious artists in Berkshire County who aren’t too well off to qualify and could benefit from a savings match for business investments or home ownership. More on that in the coming months.

Okay, now I’ve done a blog post and I can return to thinking about nothing but the election for a few more days.