When my best friend was on welfare, they would take what she had earned at her part-time job the last month and subtract half that amount from her welfare. So there was still an incentive to work, albeit less. I don't know to what degree she had to submit her budget or expenses to them (i.e. that they would actually know if she was saving money), but in general they seemed to make it as hard as possible to actually stay on Welfare.
That's about income, not savings.
Another month has passed and here is a new rationality quotes thread. The usual rules are: