Pew Analysis Finds That Nearly Three Quarters of Children of Low-Income Parents With High Savings Move Up From the Bottom

Source: Pew Economic Mobility Project

Children born to low-income parents with savings above the median level are more likely to move up the income ladder as adults (71 percent do) than those whose parents are low-income and low-saving (only 50 percent move up from the bottom rung), according to a new report released today by Pew’s Economic Mobility Project. A Penny Saved is Mobility Earned: Advancing Economic Mobility through Savings similarly shows that within an individual’s lifetime, savings increases one’s chances of being upwardly mobile – 34 percent of the adults who had low-savings and were in the bottom income quartile from 1984-1989 had moved up from the bottom by 2003-2005, whereas 55 percent of those who had high-savings moved up by the same time period.

Full Press Release
A Penny Saved is Mobility Earned (PDF)
Renewing the American Dream: A Road Map to Enhancing Economic Mobility in America Summary (PDF); Full Report (PDF)

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