While income is critical and determines how families meet basic needs, building assets is one of the key drivers to help families move into the middle class and build a stable and prosperous economic future. Assets cushion families against temporary setbacks and provide the foundation for investments that help families get ahead over the long term. Plus, they can be passed on from one generation to the next, adding to a family’s wealth.

Assets consist of checking accounts, stock mutual funds, 401(k) plans, and other financial accounts. They can also be nonfinancial items such as homes, vehicles, and businesses. National data shows families with higher incomes have more assets and assets with greater value. The number, value, and type of assets owned also varies by race, with whites having more on average than blacks and Hispanics.

Specific Recommendations for Building Assets in Colorado

• Help Coloradans create college savings accounts
• Make it easier to save income tax refunds
• Protect Coloradans from predatory lending

While not an exhaustive list of ways to help Coloradans build assets, these three suggestions can help low- and middle-income families cultivate wealth and achieve economic mobility. You can read more about the Bell’s specific recommendations in the building assets section of our Guide to Economic Mobility in Colorado.