Helping the poor save.

• Position: Statestats

The poor not only make less money, they also have fewer assets and no savings. There's not just an income gap between the poorest citizens and the most affluent, there's also an asset gap.

But some states are helping poor working families open savings accounts that they can ultimately use to start businesses, go to school and buy homes. Working on the theory that 'knowing how to save is a skill that can be learned, 27 states have (or are creating) individual development accounts (IDAs) that provide matched savings for low-income workers who go through finance training. Match rates vary depending on the program. In Washington, D.C., for instance, for every $2 a low-income saver puts into his account, the district chips in $1.

Sixteen states have earned income tax credit (EITC) programs designed to supplement the after-tax earnings of low- and moderate-income working families. State EITCs mimic the federal credit, but provide additional state money. For example, a full-time worker with a family of four who earns a gross income of $10,700 is eligible for a federal refund of $4,140 and a state refund of between $621 and $1,035, depending on the state.

GAPS IN INCOMES AND ASSETS Americans with the highest incomes earn 23 times more than those with the lowest incomes, but they are able to build 142 times more assests. Assests include such durable goods as vehicles...