Without Limits: Investigating the Asset

Limit in New York City

Sarah Angell, Manhattan (5th Avenue), NY

Introduction & Background

• The asset limit is the limit on savings & investments for those
receiving public assistance

• The current asset limit for TANF in New York is $2000. New York
got rid of the asset limit for SNAP.

• Studies have shown that the asset limit serves as a deterrent

for saving money, both while people are on public assistance
and in between periods of receiving assistance

• This study sought to test the relationship between

respondents’ understanding of the asset limit and the amount
of money they save

2
Research Questions

1/ Are recipients of public assistance able to start

saving to create an emergency fund, even with asset
limits in place?

2/ Do recipients perceive the limits to be so strict that

they do not save, or do not choose to save in
financial institutions?

3/ How does gender affect emergency

savings and use of the banking system?

3
Methodology

Hypotheses
H1) The existence of the asset limit, combined with confusion about its
value, leads recipients of public benefits to avoid saving money and
placing funds in formal accounts at financial institutions, for fear of
losing their eligibility for certain benefits.
H2) The higher someone’s guess of the asset limit is, the more money
they will have saved because they know they’re fine up to $2000.
H3) Women receiving public assistance save less money than men and
have less access to emergency funds than men.
Methodology:
• This data was collected by use of an anonymous survey.
• Respondents were AWNY Manhattan Career Advance
clients.
• Survey distribution lasted from 2 February to 25 May 2019.
There were 102 respondents.
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Results
Could you get $500 if an unplanned expense came up right
now?

• Most clients, 71%, did not have 29%

access to emergency savings.

71%

• Men are more likely to have

access to emergency funds No Yes

than women. A regression

showed a p-value of .014, so the Have you ever chosen not to open a bank account because you
relationship is statistically thought that your benefits would get cut off?

significant.
17%
• 17% of respondents reported
not opening a bank account for
fear of getting benefits cut off, 83%

showing awareness of the asset No Yes

limit

5
Results

• The relationship between guess of

the asset limit and amount of
money saved was not statistically
significant, so I cannot confirm my
hypothesis that someone’s guess
of the asset limit influences how
much money they save. The p-
value of the relationship was .053
• There was a positive correlation
between the two, meaning that
higher guesses were correlated
with more savings

6
Conclusion

• Men have greater access to emergency funds than women.

• Respondents were generally confused about how much money

they could have in the bank and still receive their benefits.

• Clients have rarely experienced getting benefits cut off due to

their savings, but some still refrain from putting money in the
bank for fear that it will affect their case.
• Over half of respondents have had the experience of getting
their benefits cut off because they got a job, but only 14% of
them said they had at one point not taken a job for fear of
getting their benefits cut off.

7
Recommendations

1/
The New York State Office of Temporary and Disability Assistance can account for gig work
The OTDA can count gig work as one of their fifteen recognized work activities.

2/
Career service providers can expand their trainings
Since participants view gig work as part of their path to full-time employment, service
providers can prepare participants for gig work without fear of undermining full-time job
placement.

3/ Gig job platforms can collaborate

Gig job platforms can collaborate with providers to develop mutually acceptable
employment verification documents so participants can receive credit for the work they
complete.