Feds to spend $400K researching saving habits in poor neighborhoods

By Megan R. Wilson - 01/18/13 02:14 PM ET

Federal regulators want to know more about the saving habits of those living in in low-income and minority neighborhoods.

A joint project between the Social Security Administration (SSA) and the Department of Education disburses grants for “quality research” on the financial literacy and retirement preparedness of those living in the disadvantaged neighborhoods.

The grants are available to graduate students at universities that serve those populations.

The SSA has set aside a total of $440,000 to be given in four separate awards, in amounts ranging from $60,000 to $120,000. The Department of Education will assist the SSA in choosing the recipients and monitoring the progress of the researchers.

Specific areas to be addressed are evaluating the “retirement security” of minorities and causes for not having saved enough in early, mid-life and late-life stages. Those given grants will also study how best to educate citizens and disadvantaged students on how to manage money and how to train community figures – such as librarians – in teaching others.