Here is a snapshot of an article from US News & World Report:
Imagine a world in which every baby receives a trust fund at birth.
It might sound like a fairy tale, but being born into money -- or at least into a $500 savings account -- could soon become a reality for all children born in the United States.
Lawmakers are considering a bill that would give each newborn just that, with the goal of promoting savings that would later be used for education, a first home or retirement.
The ASPIRE (America Saving for Personal Investment, Retirement and Education) Act would give each child born in the United States a $500 savings account. Low-income children would receive additional funding, and all participants could add to their accounts over time.
The purpose of the accounts, says Reid Cramer, the director of the Asset Building Program at the New America Foundation, would be to get people invested in their futures. "Having an asset has the potential to change the way people think and plan for their future, and sometimes those effects can be generated just from small asset holdings," he says, adding that it's possible for people to build significant savings over time.
The ASPIRE Act also would pair the creation of the accounts with financial literacy programs in schools.
1 comments:
Excellent idea. It takes money to make money.
Post a Comment