To promote financial stability among low-wage families, policymakers must impact the key factors that research shows contribute to family economic success.
What Can Policymakers Do?
Improve job training. A critical step in promoting financial well-being is to ensure that workers have access to jobs. This includes focusing job training on growth industries, creating seamless pathways from basic to advanced education, and helping low-wage workers get access to skills development through improved financial aid.
Reduce predatory financial practices. Families need access to responsible financial services like banks and tax preparation, and also need guidance in making smart financial decisions. State policy plays an important role in ensuring these services and guidance are available.
Expand tax relief for low-wage workers. States can ensure that work is a pathway out of poverty by making work pay -- that is, by helping workers earn higher wages and allowing them to keep more of what they earn.
Expand work supports. Part of making work work as a solution to poverty is to ensure that low-wage families have access to critical work supports that are critical to gaining and keeping employment -- work supports such as subsidized child care and food assistance.