Savings and public benefits
If you are receiving public benefits, you may want to know about asset limits. Asset limits are
rules about how much you can have in assets before your benefits are reduced or eliminated.
Different benefits have different limits.
Assets are things you own that have value. Your money in a savings or checking account is an
asset. A car, home, business inventory, and land are examples of assets, too.
Assets help you build financial security for you and your family. But if you receive public
benefits, some of your assets may affect the benefits you receive. Generally, the assets
that may be counted when applying for benefits are “liquid”—money in checking accounts,
savings account, and investment account are examples of liquid assets. If you own your own
home or a car, these assets will generally not count against qualifying for benefits.
You can use Tool 2: Benefits and asset limits to understand the asset limits of the benefits you
receive. This can help you save without unexpectedly losing your benefits.
Savings plan
Did you know that most people in the U.S. don’t have enough savings to cover a $1,000
emergency?^4 Whether you have low income or high income, most people can expect around
$2,000 worth of unexpected or emergency expenses in a year.^5 These unexpected expenses
include medical bills that aren’t covered by insurance, auto repairs, home and appliance repairs,
and bills that you still have to pay if you lose your job are the most common. For individuals
with fluctuating or seasonal income, the amount of money needed to cover weeks or months
when the income is less than expected or nonexistent will be even greater than the $2,000 for
unexpected or emergency expenses.
4 Dickler, Jessica, Most Americans can’t afford $1000 in emergency expenses, CNN Money, August 11, 2011. See
http://money.cnn.com/2011/08/10/pf/emergency_fund.
5 Consumer Federation of America. See http://www.consumerfed.org.