Gregory Mills presented this paper at the Family Financial Security Symposium in April, 2010.

This paper describes the development of the StabilityFirst program, which aims to enable low- and moderate-income (LMI) households to establish a savings buffer-stock to cope with financial shocks, which are defined as unexpected adverse changes in income or expenses.

Download PaperAs the StabilityFirst name implies, stabilizing one’s economic circumstances is a necessary first step toward upward mobility for low-income families. This means having the capacity to regularly meet one’s basic household consumption needs, without increased reliance on borrowing. A buffer stock of savings or “ready money” is a form of self-insurance against financial shocks.