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Every Baby a Trust Fund Baby

Submitted by Dena on 05/03/2009
Region: 
USA World
Image: 
Innovation Blurb: 
Universalizing American Stakeholder Accounts
Web Site Link: 
http://www.newamerica.net/publications/policy/every_baby_a_trust_fund_baby

The New America Foundation, along with the Center for Social Development at Washington University, advocates for a modest trust fund to be setup for every American baby at birth, and established as a basic right, like education and adequate nutrition. By opening a savings account for every American newborn, the government would give all citizens a foothold in the financial system.  In the most commonly promoted version of the plan, the government would contribute an initial deposit at birth, with low-income families receiving a supplement. The family could add to the fund, which would accrue interest tax-free. At 18, the accountholder could begin to withdraw money for higher education, homeownership, and eventually, retirement.

Their Description: 

An American Stakeholder Account (ASA), established for every child at birth, would build a savings and ownership culture in America, promote financial literacy, and fortify the American economy for the long haul. Every child would automatically receive a $6,000 deposit into an ASA at birth -- and also be eligible for dollar-for-dollar matching funds for voluntary contributions up to $500 a year. Over time, ASAs will evolve into a broad system of saving accounts that all Americans, and especially low-income Americans, can tap to meet their asset needs throughout their lives, enabling them to invest in higher education and lifelong learning, purchase a first home, start a small business, and build a nest egg for retirement.

Contact: 

New America Foundation
1899 L St., N.W., Suite 400
Washington, DC 20036
202-986-2700

Image Permission: 
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Image Notes: 

Stock image.

General Notes: 

The New America Foundation, along with the Center for Social Development at Washington University, advocate for the initiative.   The Foundation writes that an American Stakeholder Account (ASA), established for every child at birth, would build a savings and ownership culture in America, promote financial literacy, and fortify the American economy for the long haul.

Hub Categories: 
Economy