The Downpayments on the American Dream Policy Demonstration (ADD), the first demonstration of its kind, tested the effectiveness of Individual Development Accounts (IDAs) as a tool for low-income Americans to achieve economic independence. With support from 13 community-based organizations across the country, 2,364 low-income individuals opened IDAs. CSD designed and implemented the research plan for the seven-year demonstration. Methods included, among others, account monitoring, in-depth interviews, cross-sectional surveys, case studies, and program assessments.

Findings indicate that, contrary to common perception, the poor can and do save. Another key finding was an association between savings outcomes and structural characteristics of IDA programs. The latter finding suggests that inclusive asset building is most effectively achieved through program and policy design. As CSD Director Michael Sherraden has noted, a successful approach to asset building “would focus not on changing people, but rather on changing policies.”

ADD continues to inform asset-building policy and program development, most notably the Assets for Independence Act (AFIA) in the U.S. and the Saving Gateway and Child Trust Fund in the United Kingdom. A fourth wave of data collection will provide additional insight into asset building and low-income Americans.

• Read the Research Plan for ADD
• Read a summary of findings from ADD
• See all ADD publications
• Learn more about Can the Poor Save, a book that describes the theory, methods, and findings of ADD