Save money through the Earned Income Tax Credit and other asset-building strategies

Last month, I wrote about the Earned Income Tax Credit, or EITC. It's a federal program that helps low- and moderate-income taxpayers keep more of what they earned, no matter where in the United States they live. Staff at all of Oregon's and Washington's free tax assistance preparation sites are making an effort to educate taxpayers about their rights to this credit.

In this post, I want to zero in on a specific organization in Washington state that is not only helping to raise awareness about EITC eligibility but also working with financially at-risk families to build their assets.

It's human nature to think that if you barely have enough money to pay your monthly bills, why even consider building a nest egg. But the truth of the matter is that financial experts committed to helping low-income families save for their dreams seem to find ways to make saving happen. One such umbrella program with many talented partner agencies is the Washington State Asset Building Coalition. Here is what they do:

• Promote financial literacy, savings and access to mainstream banking
• Promote use of the EITC (as I mentioned earlier in this post) along with free and reduced-cost tax preparation services
• Provide incentives to invest in appreciable assets for long-term prosperity.

Their statistics show that more than a quarter of Americans are living paycheck to paycheck without savings or investments in equity such as a home or small business. Coalition participants rely on the evidence that, with training and incentives, even the lowest income Americans can break this cycle and begin saving and planning for a better future.

The Asset Building Program offers start-up support and free consultation for asset building activities in communities across Washington. For more information, visit its website.

And, don't forget to check into qualifying for the Earned Income Tax Credit this tax season.