Ray Boshara: All Publications, Events and Press

New America Foundation Appoints New Leaders for Assets and College Savings Programs

Communications — Thu, 18 Jun 2009 08:05:00 -0400

Washington, DC -- Beginning July 1, 2009, Reid Cramer will assume the post of director of New America Foundation's Asset Building Program. Cramer, who holds a Ph. D from the LBJ School at the University of Texas at Austin, has been research director in the assets program since 2003 and played a leadership role in New America's Next Social Contract Initiative as well. Before joining New America, Cramer served at OMB in both the Clinton and George W. Bush Administrations.

Combating Poverty by Building Assets

Cecille Isidro — Mon, 01 Jun 2009 08:07:00 -0400

A child in Uganda, orphaned when his parents died of AI DS, is off the streets and avoiding AI DS himself by saving money for secondary school with the support of the innovative Suubi project, which provides poor children with Child Development Accounts. In China's western Xinjiang region, a poor rural farmer sees his "dead," or untouchable, pension savings become "live," or usable income-producing assets, thanks to the work of a visionary local government bureaucrat.

New College Savings Initiative Aims to Advance College Success for All Families

Communications — Thu, 21 May 2009 10:51:00 -0400

Today, May 21st, the New America Foundation and Center for Social Development (CSD) at Washington University in St. Louis announced a new College Savings Initiative to examine and improve "529" college savings plans so more people have the opportunity to attend and complete college.

Toward Progressive 529 Plans

Asset Building — Thu, 23 Apr 2009 06:14:00 -0400

Key talking points on 529 plans, their current flaws, and how progressive features might remedy them.

Creating a Save-and-Invest Economy at Tax Time

Cecille Isidro — Mon, 20 Apr 2009 05:01:00 -0400

A New America Event
04/21/2009 - 1:00pm

President Obama recently called for a new era in the American economy--an era where Americans save and invest, rather than borrow and spend. Now that the 2008 tax season has come to a close--with over three-quarters of Americans receiving federal refunds averaging more than $2,700--how can families best save and invest their precious funds?

New America Foundation commends Vice President Biden for Committing to Improve 529 College Savings Plans

Communications — Fri, 17 Apr 2009 09:05:00 -0400

Washington, DC -- The New America Foundation commends Vice President Biden and the Obama Administration's Middle Class Task Force for their announcement today to review 529 plans to make them more effective and reliable. The announcement came during a meeting in St. Louis, Missouri on College Affordability. "529s are a great vehicle for college savings for many better-off families, now the challenge is to make them a good deal for low- and middle-income families as well," said Ray Boshara, Vice President of Domestic Policy Programs at the New America

The Next Progressive Era

Cecille Isidro — Tue, 14 Apr 2009 03:45:00 -0400

A New America Event
04/14/2009 - 12:15pm

A discussion with Authors Phillip Longman and Ray Boshara, with Commentary by Mark Schmitt and Reihan Salam.

Poverty's New Challenges, New Alliances, and New Ideas

Stephanie Gunter — Fri, 03 Apr 2009 05:30:00 -0400

A New America Event
04/03/2009 - 10:00am

New ideas and new alliances--especially and most recently, The Poverty Forum--offer hope and a fresh blueprint for bi-partisan action to combat poverty amidst a deepening recession which threatens to push millions of Americans into, or further into, poverty. Other new ideas, new reports, and new alliances have emerged as well. The recently enacted recovery package includes significant help for struggling families, but does it go far enough? What other policies must we consider? And what are the politics of reducing poverty and expanding opportunity… more

The Next Progressive Era

Cecille Isidro — Wed, 01 Apr 2009 18:00:00 -0400

The Next Progressive Era provides a blueprint for a re-empowered progressive movement and describes its implications for American families, work, health, food, and savings.

Survey: Americans Are Optimistic Despite Recession | Voice of America

Cecille Isidro — Thu, 12 Mar 2009 19:10:00 -0400

Ray Boshara of the New America Foundation says many low-income people in the United States believe strongly in their ability to move up. But net worth is critical. "Families that have stocks, families that have homes, savings, what can they do with ...

Econ Standing Bigger Concern Than Inequality-US Survey | Wall Street Journal

Cecille Isidro — Thu, 12 Mar 2009 13:08:00 -0400

Ray Boshara, vice president of the New America Foundation, said he was struck by respondents' belief that "focusing on inequality of opportunity, and not so much inequality of outcomes, was most important." This sentiment was shared across all income ...

Universal Trust Funds | New Hampshire Public Radio

Cecille Isidro — Wed, 25 Feb 2009 13:10:00 -0500

Here are the basics – the government sets aside a small nest egg for every child, which would grow until they reach age 18. At that point the account-holder could begin to withdraw money for college, a home, and eventually retirement. The movement is not without its critics, who say it’s a slippery slope to a privatized social safety net.

Ray Boshara joins us with more on the idea. He directs the Asset Building Program at the New America Foundation, and has worked closely on this ...

The Basics of Progressive 529s

Asset Building — Tue, 24 Feb 2009 09:30:00 -0500

Background on 529 college savings plans

In 2001, the Internal Revenue Code authorized college savings plans (529 plans) as a tax-advantaged savings tool. In a 529 plan,[1] individuals save money in an account that is dedicated for future college expenses of a beneficiary. States administer 529 plans, and offer a limited selection of funds with a range of risk and return characteristics.[2] In

New America Foundation and America Saves Week

Communications — Mon, 23 Feb 2009 14:08:00 -0500

Washington, DC -- The New America Foundation along with more than 100 government agencies, non-profit organizations, trade associations, and companies, is participating in America Saves Week, an organized effort to encourage and assist individuals to assess their savings and take action to advance their savings progress.

Cash on Delivery | Boston Globe

Cecille Isidro — Sun, 01 Feb 2009 02:15:00 -0500

"One of the lessons of the current crisis is that there are limits on what we can borrow," says Ray Boshara, director of the Asset Building program at the ...

Responsible Homeownership

Stephanie Gunter — Wed, 17 Dec 2008 11:00:00 -0500

A New America Event
12/17/2008 - 9:00am

As 2008 draws to a close, over 2 million families have already lost their homes or are facing foreclosure. A protracted homeownership crisis will harm both families and entire communities alike and threatens to weaken an already besieged national economy. Yet as policymakers agree to spend billions of dollars to shock the economy back to life, they seem less committed to searching for an effective policy response to address the foreclosure storm and resurrect a responsible housing finance system.

Ray Boshara in U.S. News & World Report | 'A Buy Signal for Washington'

Communications — Mon, 27 Oct 2008 08:14:00 -0400

...Analyst Ray Boshara of the New America Foundation also thinks that the stock market remains a key to boosting our future standard of living. Here's why: Unless rising Asia becomes disappearing Asia, excess global labor supply will continue to push down hard on wages. "We are not going back to the 1950s," Boshara says. "The return from labor has been diminishing. Families have to earn income not just from a job but from assets."

But rather than Social Security privatization, Boshara is a proponent of "baby bonds." Each of the 4 million kiddies born every year would receive a $1,000 to $6,000 deposit from Uncle Sam into a "stakeholder account," where it would stay, compounding away, until the child hit 18. After that, the money could be used for college or a down payment on a home.

The stock market may be entity non grata in Washington right now. But let's hope it will be invited back to attend some future State of the Union address... Full story

Ray Boshara in Online NewsHour with Jim Lehrer | 'Programs Aim to Break Cycles of Poverty in the South Through Home Ownership'

Communications — Fri, 01 Aug 2008 14:42:00 -0400

IDAs are a tool that can be used to help low-income people move into the financial mainstream, said Ray Boshara, vice president for domestic policy programs for the New America Foundation, a non-partisan public policy institute.

"When families have savings and assets, it not only prevents them from falling into financial ruin ... when you own things you are invested in your community in a way you normally would not be," Boshara said. LINK

Innovations, challenges in savings and financial inclusion for the poor highlighted in new report from the Global Assets Project

Communications — Wed, 30 Jul 2008 14:10:00 -0400

Washington DC - Innovative partnerships and convergence in the fields of asset building, microfinance and financial inclusion are sparking increased interest in access to savings, assets, and financial inclusion for those living in poverty around the world, according to a report released today by the Global Assets Project and the Citi Foundation. The report, "Global Savings, Assets and Financial Inclusion: Lessons, Challenges & Directions" is based on the Global Symposium held in Singapore last year which brought leading practitioners, scholars, policymakers, corporate leaders, and funders in these fields together for the first time.

The report is available here and at www.GlobalAssetsProject.org.

"The microfinance, asset-building, and financial inclusion fields are evolving and converging rapidly, creating a sense of excitement among non-profits, policymakers, financial institutions, advocates, and the poor themselves," remarked Mr. Michael Sherraden, Director of the Center for Social Development (CSD) at Washington University in St. Louis and Mr. Ray Boshara, Vice President and Director of the Asset Building Program for the New America Foundation. The Global Assets Project, now beginning its third year, is a joint venture between CSD and the New America Foundation.

"This report is full of practical, fascinating examples of how access to the right kind of financial services can help families build assets and live better lives -- it should inspire a renewed focus on asset development by microfinance practitioners and supporters," lauded Ms. Kate McKee, Senior Advisor at the Consultative Group to Assist the Poor and contributor to the report.

"It was a great honor for Citi to host the Global Assets Symposium last year which highlighted the extensive range of current efforts to increase financial inclusion and opportunities for asset building globally. The goal of this report is to inspire actors to continue innovating in this space so that the agenda can move forward," said Ms. Leslie Meek-Wohl of the Citi Foundation.

This report provides a glimpse into the candid discussions and exchanges offered by the participants in the Global Symposium on Savings, Assets and Financial Inclusion. The purpose of this unique convening was to illuminate and inform strategies for universal inclusion in savings and asset-building products, programs, and policies around world. This report describes in details emerging trends, lessons, challenges and opportunities for thinking about how the poor, in developed and developing countries, can build their assets and wealth. Finally, the report includes possible next steps that may be taken within these fields to move this emerging body of work forward.

To arrange an interview with Mr. Ray Boshara, of the New America Foundation, please contact Erin Drankoski -- call 202-997-8727 or e-mail drankoski@newamerica.net. To contact Ms. Leslie Meek-Wohl, of the Citi Foundation, call 212-559-1532 or e-mail MeekL@citi.com.

About the Global Assets Project: The Global Assets Project -- created in 2006 as a joint venture between the Center for Social Development at Washington University in St Louis and the Asset Building Program of the New America Foundation -- aims to advance strategies and public policies that build savings and assets for low- and moderate-income people around the world.

About the Citi Foundation: The Citi Foundation is dedicated to enhancing economic opportunities for underserved individuals and families in the communities where we work throughout the world. Globally, the Citi Foundation is focusing its giving on Microfinance and Microentrepreneurship, which helps individuals become economically self-sufficient; Small and Growing Businesses, leading to economic expansion and job creation; Education, which prepares young people for personal and professional success; Financial Education, which helps individuals make informed financial decisions; and the Environment with a focus on sustainable enterprises that generate jobs and stimulate economic growth while preserving the environment.

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The New America Foundation is a nonprofit public policy institute whose purpose is to bring exceptionally promising new voices and new ideas to the fore of American public discourse. Relying upon a venture capital approach, the Foundation invests in outstanding individuals and policy solutions that transcend the conventional political spectrum. Headquartered in Washington D.C., New America also has offices in California.

Press Contact:
Erin Drankoski
New America Foundation
202-997-8727
Drankoski@newamerica.net

Child Savings Accounts: Global Trends in Design and Practice

Asset Building — Wed, 30 Jul 2008 11:11:00 -0400

INTRODUCTION

Child Savings Accounts (CSAs) exist as policies, products, and programs, and are currently being offered by governments, financial institutions, and non-profits. CSAs are more than basic savings accounts. What distinguishes CSAs from standard savings accounts is the degree to which they serve as means to an end-most often to spur the social and/or economic development of children. Another distinguishing feature is they are often intentionally targeted to children of low- and moderate-income families (as opposed to only children of middle-class and well-off families).

The concept behind CSAs is based on the premise that saving is an important way for an individual to build assets and accumulate the wealth necessary to meet a variety of needs throughout one's lifetime. Households can use savings to build a nest egg for future investments, and in the shorter term to build a stock of resources to cushion against economic shocks (such as sickness, famine, natural disaster, or death of a family member). Such a cushion can forestall the need for households to sell off productive assets (such as equipment used to run a small business), or withdraw their children from school (more common within developing countries). Savings can also have positive long-term effects, known as "asset effects." These include adopting a more hopeful outlook on the future, or what researchers refer to as a "future orientation."[1] As a result, savings products, policies, and programs that are specifically designed to facilitate a child's accumulation of assets at an early age are increasingly considered a viable option for motivating young people to enter formal financial systems, build assets in their youth and throughout their adult lives, and ultimately lead to economic and social advancement for themselves and their families.

There is no universal model for CSAs. The design of CSAs can vary widely, from simple, low-cost savings products offered by financial institutions, to universal, life-long savings platforms with significant financial incentives offered by governments. Variations in CSA design depend largely on the type of institution offering them, and the institution's purposes for doing so. For example, a financial institution may offer a CSA product intended to cultivate new clients or help children develop a habit of savings; a non-profit may establish a CSA program intended to protect children from future economic shocks, help children build a stock of resources for future investments, or enable children greater access to education and healthcare; and a government may design a CSA policy intended to reduce poverty of children and their families, expand opportunity to the disadvantaged, or promote overall development within a society. However, while some purposes of CSAs are unique to particular types of institutions, there are also often instances of overlap in purpose and hence similarity in design.

CSA Typology: Products, Programs, and Policies

? CSA Product-This type of CSA is typically offered by financial institutions such as banks, credit unions, or microfinance institutions. It may have features such as a low initial deposit and in-kind incentives, such as a mug or school bag, for achieving certain balances.

? CSA Program-This type of CSA is typically offered by institutions such as non-profits and research organizations attempting to test impacts of CSAs on health, educational, and other outcomes. It may have features such as those mentioned above, as well as features such as significant financial incentives (i.e. a lump sum of "seed" money when the account is first opened and/or "matches" to deposits made by the family of the accountholder or the child him/herself.

? CSA Policy -This type of CSA is typically implemented by governments, both local and national. It may have features such as those mentioned above, as well as features such as being progressive (i.e. giving more financial support to those more in need) and/or being universal (i.e. being offered to every newborn or child in a locality).

This paper aims to augment the limited existing literature and research on CSAs by providing an overview of the current global landscape of CSAs in their various forms. By describing and briefly assessing some of the reasons why institutions offer CSAs and the range of features that can constitute their design, we aim to broaden understanding of these accounts in their various forms. Furthermore, we hope to illustrate some global trends in child savings accounts. For example, our examination of the current breadth of CSAs illustrates their perceived potential as a flexible and effective tool in the fields of social policy, philanthropy, and financial services. While the goal of this paper is not to advocate CSAs along these lines, we argue that they warrant further attention and examination.

The paper begins with an introduction containing an overview of CSAs and some notes on the research methodology we used for data collection. It then provides a description and analysis of common features and purposes of CSAs in their variety of forms and purposes, while providing related anecdotes and insights from our research that inform our views. The paper concludes with a discussion of a few major obstacles faced by existing and potential providers of CSAs. An Appendix at the end of this paper offers a comparison of features of and rationales for various CSA products, programs, and policies in operation around the world.

[1] For an introduction to the concept of "asset effects," see: Michael Sherraden, "Key Questions in Asset Building Research," Center for Social Development, 1999, at http://gwbweb.wustl.edu/csd/asset/keyquestions.htm (accessed June 10, 2008). For an example of a study showing effects of holding assets on health attitudes and educational plans, see: Fred M. Ssewamala et al. "A Novel Economic Intervention to Reduce HIV Risks Among School-Going AIDS Orphans in Rural Uganda," Journal of Adolescent Health, 42, 2008, pp.102-104.