APIC's Asset-Building Framework
The APIC framework describes a continuum of policies and strategies that enable families to save, invest and preserve their assets. The goal of the APIC framework is to help organizations and individuals understand the fundamental aspects of asset-building and to advocate for policies that will promote asset-building across the state.
The framework is divided into four components—Accumulation, Leveraging, Preservation and Creation—that are distinct, yet interconnected, areas of asset development. Each component is critical to a family’s ability to build, leverage and protect household assets, enhance its economic security and ensure financial independence for generations to come.
APIC Defines “Policy” in Broad Terms
APIC defines asset-building policies as public and private sector strategies that help low- and moderate-income families to accumulate, leverage and/or preserve financial assets. This approach includes policy and practical strategies that enable people to:- Learn about and undertake asset-building opportunities
- Access banking services and products
- Build equity through investment in homes, businesses or community real estate
- Protect their accumulated assets for current and future generations.
Framework Focuses on Financial Assets
Asset building is a life-long process that includes savings and investment—from birth to retirement—of financial resources like cash, stocks, bonds, mutual funds, retirement savings, and home, business and/or real estate equity. APIC knows that this financial continuum may not always be a linear process.
The Asset-Building Frameworks provides a way of categorizing the vast array of asset-building tools (products, services, and policies) to show the interconnection of financial choices. For example, the Framework recognizes the need for families to have access to knowledge, skills and services necessary to save and invest. It also underscores the need for public policies that encourage and protect asset development, and the demand for financial institutions to develop better products for people at all income levels.
APIC acknowledges that individual and community wealth is not solely defined by financial well-being. Natural resources, human capital and cultural traditions are all examples of community assets that contribute to the richness and well-being of our lives.
