Asset limits (or savings penalties) are designed sothat only the most vulnerable can access public benefit programs. However, in practice,they discourage low-income households from having a checking or savings account andbuilding a savings cushion. Relaxed asset limits increase low-income household savingsand mainstream financial market participation.

means-tested program—Medicaid, Supplemental Nutrition AssistanceProgram (SNAP), Supplemental Security Income (SSI), Temporary Assistancefor Needy Families (TANF), and/or General Assistance (GA)

means- tested welfare program (e.g., Supplemental Nutrition AssistanceProgram [SNAP], Medicaid

Welfare programs are generally considered those in whichan individual has to be below a certain income and asset level and fall into aparticular population group in order to be eligible. These are also known asmeans- tested programs, with individuals only able to participate if their incomeand assets are low enough to qualify.7