While anti-poverty policy makers have traditionally focused on issues of income and consumption, an expanded vision of poverty alleviation has emerged in recent years—one that encourages savings, investment, and asset accumulation in conjunction with, not instead of, traditional anti-poverty programs. Assets play a vital role in poverty alleviation by providing not only economic security but also a psychological orientation that encourages low income families to save and plan for the future.
In contrast to previous approaches, which concentrated on income and consumption, a more comprehensive strategy for reducing poverty has emerged in recent years—one that incorporates savings, investments, and wealth-building alongside traditional programs. Assets are vital in combating poverty by providing not only financial security but also a mental mindset that encourages low-income families to save and plan for the future.