New America Foundation Commends San Francisco Mayor Gavin Newsom’s Baby Savings Bond Proposal
Today, the New America Foundation Asset Building Program commended San Francisco Mayor Gavin Newsom’s innovative proposal to endow every child born in the city with a $500 Baby Savings Bond. The money, which would earn interest over time, would be available when the student graduates from high school, to be used for college costs or towards a first home.
“We applaud this bold, forward-looking proposal. Now that San Francisco has set the stage, we look to California and the rest of the country to offer young Americans the chance to realize their potential and to achieve their dreams,” said Olivia Calderon, California Legislative Director of New America’s Asset Building Program. “At a time when California is experiencing a high school dropout crisis with too many of our teenagers looking toward the future with little hope, a child savings account provides students the incentive and opportunity to engage in the learning process knowing that a college education is an attainable goal.”
"Bravo to Mayor Newsom and the city of San Francisco for their vision and leadership," said Ray Boshara, Vice President and Director of New America's Asset Building Program. "There's no better way to usher in generations of savers and financially savvy adults than savings accounts at birth. Moreover, San Francisco can expect generations of kids growing up with hope and opportunities that would otherwise not exist."
In 2007, the New America Foundation sponsored bi-partisan legislation in California to establish a child savings account for every baby born in California to use towards a college education, homeownership, small business or retirement.
At the national level, New America’s Asset Building Team advised a bipartisan coalition that reintroduced the ASPIRE Act in the U.S. House of Representatives. The Act would similarly establish a child savings account for every American child. The ASPIRE Act is just one of several proposals--offered by Democrats and Republicans alike--to create a universal child savings account.
Many states, including California, and other nations have either proposed or enacted child savings accounts at birth. These include the UK, Canada, Singapore, Mongolia, and Hungary. In October of 2006, William Miranda Marín, Mayor of Caguas (Puerto Rico’s second largest city) announced the creation of children’s savings accounts for every child born in his municipality. If enacted, San Francisco would be the first municipality in the 50 states to establish a savings account at birth.
Related Programs: New America in California, Asset Building Program, California Asset Building
Topics: Ownership & Assets
