ASPIRE Act/KIDS Accounts: Publications, Events and More

Ray Boshara in The Record (NJ) on Child Savings Accounts

Communications — Mon, 22 Oct 2007 08:26:00 -0400

New America in the News:

Concerned about the nation's poor savings rate, lawmakers such as Sen. Hillary Clinton have been talking about getting the government directly involved in establishing savings accounts for children.

The New York senator caused a stir last month when she said she would like to see every newborn receive a $5,000 bond that could be used later for college or a home purchase. Her remarks drew derision, and she has since backed away from that idea. About 4 million babies are born every year in the United States.

Lawmakers have kicked around a more modest plan for several years, one initially co-sponsored in 2004 by Jon Corzine, a Democrat, and Rick Santorum, a Pennsylvania Republican, who were serving in the Senate at the time. That plan would give every newborn $500 in a savings account. Sen. Charles Schumer, D-N.Y., reintroduced the bill this month.

The proposal calls for creation of an account at birth with a one-time $500 government contribution. Children living in households with incomes below the national median would be eligible for an extra contribution of as much as $500 at birth as well as the opportunity to earn $500 per year in matching funds. The money could be used later for housing, education or a retirement fund. The cost to taxpayers is estimated at $3.25 billion the first year and $37.5 billion over 10 years. When recipients turn 30, they would be required to repay the initial deposit, and that would provide seed money for future accounts.

Ray Boshara, vice president of the non-partisan Washington think tank The New America Foundation, and one of the leading advocates of the bill, said he and other champions of the measure are courting the banking industry for support. "We're working on them, but we haven't yet achieved a broad coalition," he said...

For the complete article, please follow this link.

Baby Bonds Pay Bipartisan Dividends

Articles — Tue, 16 Oct 2007 12:33:00 -0400

At a recent campaign stop with the Congressional Black Caucus, Sen. Hillary Rodham Clinton said, “I like the idea of giving every baby born in America a $5,000 account.”

That was enough to generate a few headlines and some right-wing outrage. The Drudge Report was quick to tweak one of its favorite targets and drive some Internet traffic with a bold banner, “A Bond for Every Bassinet.”

The conservative Washington Times and New York Post blasted the idea within 24 hours, and Republican presidential candidate Rudy Giuliani called it “pandering” and promptly incorporated it into his next fundraising appeal.

But… more

Ray Boshara and the ASPIRE Act in the Los Angeles Times

Communications — Sun, 07 Oct 2007 03:08:00 -0400

New America in the News:

In 2004, Sens. Rick Santorum (R-Pa.) and Jon Corzine (D-N.J.) proposed the America Saving for Personal Investment, Retirement and Education (ASPIRE) Act, legislation that would have given every baby a minimum $500 endowment, untouchable for 18 years, at which time it could be used to help pay for college, put a down payment on a house or start a business....

The notion of a baby bond is grounded, according to supporters, in the concept of the American ownership society, which was a tenet of President Bush's 2004 campaign (when the practical application was privatizing Social Security).

"The intellectual history of this idea is property ownership -- the Homestead Act, the GI Bill -- conscious efforts to spread property ownership through the population," said Ray Boshara, director of the Asset Building Program at the nonpartisan New America Foundation, which helped craft the ASPIRE legislation and advised British officials on their program. "That has broad bipartisan support."

The idea, he said, is to put children on a path toward lifetime savings and wealth accumulation, a notion that appeals to conservatives and liberals.

On Wednesday, in fact, the ASPIRE legislation was quietly reintroduced in the House of Representatives by a bipartisan coalition. Boshara said the reaction to Clinton's remarks --especially Giuliani's -- made some Republican supporters nervous.

"Even if Rudy Giuliani thinks it's a good idea, he's not going to say that," said Boshara. "This is a campaign, and this was an easy target. I suspect that $500 would not have received quite the denunciation that $5,000 did."

Slightly more than 4 million babies are born in this country every year. Money in a baby bond plan would be invested and augmented by matching funds. Financial education would be part of the program. The goal would be to have around $20,000 available to each young adult when he or she turns 18.

"If you have assets as a kid, it changes your mind-set and your orientation, and conservatives love that part of the idea," said Boshara. "For Democrats, it's more about opportunity. When everyone was talking about Social Security and savings and retirement security, this was the only idea that brought Democrats and Republicans together..."

For the complete article, please visit the Los Angeles Times website.

Bipartisan Lawmakers Introduce 'KIDS Account' Bill to Build Savings, Financial Education, and Retirement Security

Communications — Fri, 05 Oct 2007 05:28:00 -0400

A bipartisan coalition introduced the America Saving for Personal Investment, Retirement, and Education Act (“The ASPIRE Act”) which would set up a “KIDS Account” at birth for every child in America which they can later use to pursue post-secondary education, buy their first home, or build up a nest-egg for retirement. The ASPIRE Act, which primarily benefits low-income kids, is based on research provided by the New America Foundation’s Asset Building Program. Representatives Patrick Kennedy (D-RI), Phil English (R-PA), Jim Cooper (D-TN), Rahm Emanuel (D-IL), and Tom Petri (R-WI) introduced the ASPIRE Act in the House on Wednesday.… more

KIDS Accounts

Communications — Wed, 03 Oct 2007 09:00:00 -0400

A New America Event
10/03/2007 - 2:00pm

An unlikely group of legislators, spanning the full political spectrum, is proposing a fresh, long-term response to the challenges of saving, financial education, and retirement security: KIDS Accounts.

By providing every newborn child a savings account at birth, with matching deposits for lower-income children, KIDS Accounts will create a national culture of savings and investing, promote financial education, and encourage life-long asset accumulation-especially higher education, homeownership, and a nest-egg for retirement.

There could not be a better time to re-build a culture of savings in America, beginning with every child in America. Not since the Great Depression have Americans saved so little, and not since the Great Depression have so many Americans risked losing their homes to foreclosure.

Joining the Senate and House champions of the ASPIRE Act, will be New York Times columnist David Brooks, a sample of the bill’s leading supporters, and a teenager from Delaware now saving for his future.

Marketplace Interviews Ray Boshara on Kids' Savings

Communications — Wed, 03 Oct 2007 04:17:00 -0400

New America in the News:

Scott Jagow: A bill being introduced in Congress this morning might breathe new life into an old idea: Savings accounts for children…

Sarah Gardner: The idea is simple: give every American newborn $500 in a tax-free savings account. At age 18, kids can use it for college -- or they can sock it away until later for a first home or retirement.

Supporter Ray Boshara at the New America Foundation says more than a third of children grow up in households without investments.

Ray Boshara: If we don't endow these kids with assets at birth, I think their opportunities for a better life are diminished. So-called "baby bonds" have high-profile support. Hillary Clinton recently proposed giving everyone $5,000 at birth…

To listen to the interview with Ray Boshara, please visit Marketplace's website, or download the attached MP3 file below.

Ray Boshara is director of New America's Asset Building Program. For more information on child savings accounts, please visit www.aspireact.org.

A Citizen's Guide to the ASPIRE Act

Asset Building — Mon, 01 Oct 2007 13:09:00 -0400

The Section-by-Section Summary of the Bill KIDS Account Fund KIDS AccountsCertifications Related to Government ContributionsRules Governing KIDS Accounts Relating to Investment, Accounting and ReportingTax Treatment of KIDS AccountsPrivate Management of KIDS AccountsKIDS Accounts Fund BoardFiduciary ResponsibilitiesAssignment, Alienation and Treatment of Deceased IndividualsAccounts Disregarded in Determining Eligibility for Federal BenefitsReportsPrograms for Promoting Financial Literacy

For a detailed description of each section of the ASPIRE Act, please see the PDF document below.

ASPIRE Act Bill Summary

Asset Building — Mon, 01 Oct 2007 13:00:00 -0400

Purpose of the Bill

To encourage savings, promote financial literacy, and expand opportunities for young adults by establishing a KIDS Account for every newborn child.

KIDS Accounts

Every child born after December 31, 2007 will have a KIDS Account opened for them automatically when their Social Security card is issued. Each account will be endowed… more

Ray Boshara Interviews with CNBC on Hillary's "Baby Bonds"

Communications — Mon, 01 Oct 2007 02:36:00 -0400

New America in the News:

Presidential hopeful Hillary Clinton is pushing the idea of giving infants special bonds in order to give them a headstart in life, with Ray Boshara, New America Foundation V.P. ...

"This was the only proposal in the multibillion dollars that brought Democrats and Republicans together back when we were talking about savings and retirement security," said Ray Boshara.

"It's important to teach financial basics and to reestablish a savings culture in america."

"It's the kind of entitlement that more that pays for itself over time... If you start with wealth you create more owners and investors."

Ray Boshara is also Director of the Asset Building Program. To view this video from "On the Money," please visit the CNBC website.

ASPIRE Act Frequently Asked Questions

Asset Building — Mon, 01 Oct 2007 02:00:00 -0400

The attached document answers the following questions about the America Saving for Personal Investment, Retirement, and Education (ASPIRE) Act:

What does the bill do?Why is a bill to promote asset building for children necessary? Who is eligible? Will illegal immigrants or children who become citizens… more

Ray Boshara Discusses 'Baby Bonds' and Asset Reform on ABC News

Communications — Fri, 28 Sep 2007 04:07:00 -0400

New America in the News:

Sen. Hillary Clinton, D-N.Y., floated the idea Friday of giving every child born in America a $5,000 "baby bond" from the government to help pay for future costs of college or buying a home...

"I'm pleased that Sen. Clinton keeps talking about 'baby bonds,' whether $500 or $5,000 at birth," said Ray Boshara, the vice president of the New America Foundation.

Boshara, who has worked with Clinton's policy staff on the concept, did not see the different dollar figure floated by Clinton on Friday as reflecting a definite policy change. Rather, he saw it as an affirmation of her excitement with the concept and expects her to continue to work out the details when she develops a formal proposal.

"I think Sen. Clinton is very, very excited about accounts at birth and hasn't settled on the right combination between initial deposits and matching deposits until 18," said Boshara. "She and her staff told me in the next several months we'll work on the details. . . . When we work out the details, we'll figure out the best way to get to around $20,000 at 18 -- that's what matters."

Ray Boshara is Director of New America's Asset Building Program, which is hosting an event on Wednesday, Oct. 3, 2007, to showcase the ASPIRE Act and its goal of creating savings accounts for children. For this complete article, please visit the ABC News website.

Columnist Neal Peirce Extols Ray Boshara, Kids Savings Accounts

Communications — Mon, 18 Jun 2007 10:12:00 -0400

New America in the News:

Are the bad old days back? Read the headlines and you'd think so: "Violent Crime Blazing Back in America" and "Big-city murders way up since '04..."

Let's assume the recent rise is serious. What's happening? Lots of competing explanations get offered: Gang problems are now growing in smaller cities. Gun laws are loose and the politicos fear to stiffen them. Because we have the world's highest incarceration rate, rising numbers of inmates are being released from prisons — far too few rehabilitated or able to land a job...

Everyone wants truly dangerous criminals behind bars — indeed for as long as possible...

How about prevention — investing early, systematically in kids and families? This is the issue all the alarming crime headlines, and quick political fixes, ignore. Poverty, broken families, poor education and significant crime are inextricably bundled. Early childhood nutrition, care and education can pay off hugely later...

What of the argument that we can't "afford" the depth of early-childhood services such as other advanced nations provide?

Ray Boshara of the New America Foundation has a radically better idea: Establish an "American Stakeholder Account" for every child at birth — initial government deposit $6,000, plus eligibility for dollar-for-dollar matching funds for voluntary contributions up to $500 a year. Assuming modest but steady contributions, a young person might have $20,000 by age 18 for college tuition, a home, starting a business, or long-term savings.

What does such an idea have to do with crime? A lot, I'd think — building a mindset of hope is the best conceivable antidote to the lure of the streets, gangs and drug dependency. The ultimate benefits to the U.S. economy, in added wage earners and taxpayers, and fewer mired in lives of desperation, could be immense. America's surest road to a safer society is what we always claimed to be the best at — building opportunity...

For the complete article, please visit The Seattle Times website.

American Banker Reports on Kids Savings Accounts

Communications — Mon, 16 Apr 2007 14:51:00 -0400

New America in the News:

Newborns typically are mailed birth certificates and Social Security cards within weeks of leaving the hospital. In at least two states they could soon be receiving other important documents: savings account statements.

A bill being considered in the California Legislature would create savings accounts for every child born in the state after Jan. 1, 2008. Each account would be seeded with $500 in state funds, and the money could be used only for specific purposes, such as college or technical education or buying a first home...

All states and the District of Columbia offer 529 college savings programs, and at least eight states offer financial incentives, such as matching deposits, to encourage families to save...

But the program being considered in California would be the first in which a state would set up accounts for all newborns - regardless of family income - and make the initial deposit.

The April 25 hearing is to be held in the Senate Revenue and Taxation committee. Jim Evans, spokesman for Sen. Darrell Steinberg, D-Sacramento, said the senator authored bill on behalf of the New America Foundation, a Washington nonprofit that promotes asset-building programs for the poor.

"There's a crisis - not enough people are savings and building assets in today's society," Mr. Evans said. "We think if you seed accounts with $500 in state money, that will encourage families to put additional funds into these accounts to buttress the original investment..."

For the complete article, please visit the American Banker website.

Kids' Accounts Warrant Debate

Articles — Thu, 22 Mar 2007 22:38:00 -0400

Governor Schwarzenegger was cheered when he recently talked about post-partisanship in Washington, D.C. But the post-partisan waters don’t run deep back home in California. Two state senators who just crossed the aisle to forward a creative solution to a pressing problem are getting more grief than glory.

Senator Darrell Steinberg, D-Sacramento, and Robert Dutton, R-Rancho Cucamonga, held a press conference on February 28 to introduce their bill to create a California Kids Account for every newborn. The goal is to encourage parents to start saving early for their children’s future and, in the process, build the whole family’s financial know-how.… more

Daniel Weintraub Writes on Immigration and Kids Savings Accounts

Communications — Tue, 06 Mar 2007 19:45:00 -0500

New America in the News:

Two seemingly unrelated developments last week tell us a lot about immigration and the public's attitude toward it.

One was the conservative reaction to a bill introduced in the Legislature that would give a $500 savings account to every child born in California.

The other was a study by the Public Policy Institute of California concluding that immigration -- legal and illegal -- tends to increase wages for everyone except earlier immigrants.

The savings bill was introduced by two state senators, Democrat Darrell Steinberg of Sacramento and Republican Bob Dutton of Rancho Cucamonga.

It was a pale imitation of an idea first advanced by authors Bruce Ackerman and Anne Alstott in their book, "The Stakeholder Society." Ackerman and Alstott propose that all Americans receive $80,000 from the government on their 21st birthday so that they can buy property, start a business or pay their way through college.

The notion has been kicking around think tank circles for years and has attracted some support from across the ideological spectrum. The idea is to give every American a stake in society, to ensure that even those children born to poor parents and raised in disadvantaged neighborhoods have an opportunity to move into the middle class.

The California version introduced by Steinberg and Dutton was inspired by the New America Foundation, which promotes bipartisan solutions to difficult problems. The $500 grant the bill proposes would be deposited in a state account in each child's name, and friends and relatives would be encouraged to add to the stake over time. Upon turning 18, the recipient could withdraw the money and spend it for a house, education, vocational training or to put into a retirement account...

For the complete article, please visit The Sacramento Bee website.

Going for Broke

Articles — Tue, 06 Mar 2007 04:55:00 -0500

In the aftermath of Hurricane Katrina, which struck the Gulf Coast with such ferocity in late August 2005, Americans were shocked by the broadcast images of desperately poor people left to fend for themselves. The depth and consequences of poverty in America, normally hidden from public view, had once again become the subject of debate and national soul-searching. And yet, a year and a half later, the subject of poverty has fallen so far off the public’s radar screen that President Bush did not give it a mention in his recent State of the Union Address. How can our prosperous… more

David Lesher Discusses Kids' Accounts on Sacramento's KXTV

Communications — Fri, 02 Mar 2007 21:15:00 -0500

New America in the News:

California lawmakers are considering giving $500 to every single baby born in the state. The bipartisan bill aims to give babies a financial head start with a savings account.

"Anything we can do to encourage savings and investment and to provide a young adult -- especially young adults from lower income families, families of modest means -- to be able to have a small nest egg to go to college to learn a career, down payment on the house, would be a good thing," said Sen. Darrell Steinberg, D-Sacramento.

At age 18, each child would repay the original $500 gift, but they can keep any interest and additional deposits tax free.

"We're at a point where our middle class needs to grow," said David Lesher from the New America Foundation, a group that invests in non-traditional policy ideas. "We have an income gap with too many rich, too many poor and we don't have enough in the middle class..."

For the complete story, please visit the KXTV, Sacramento website.

David Lesher on San Francisco's KGO-TV Explaining Kids' Savings Accounts Bill

Communications — Fri, 02 Mar 2007 03:47:00 -0500

New America in the News:

Mar. 1 - KGO - A new plan to give newborns a head start is getting mixed reviews. The idea is to give every baby born in California $500 dollars. It would be a nest egg they would have money out of taxpayers pockets today -- that would be a nest egg when those babies become young adults...

After families add money, at 18 the child would have to pay the state back $500 and use what's left tax free for college, a house, or a retirement account. The idea came from the New America Foundation, a non partisan think tank which found one Democrat and one Republican to introduce the bill.

David Lesher, New America Foundation: "I don't know how we can not afford to give people access to home ownership and college -- that they might not otherwise have..."

New mom Lisa Jenkins would rather see the state put to use the $500 now, rather than having little Sophie wait until she's 18 to see any benefits.

Lisa Jenkins, New mother: "There's going to be a need for more classrooms, more teachers, or overcrowding of what we already have."

But the New America Foundation says we have to give these little ones a chance.

David Lesher: "We're at a point where our middle class needs to grow. We have an income gap, with too many rich and too many poor -- and not enough in the middle class."

For the complete story, please visit the KGO-TV, San Francisco website.

San Francisco Chronicle Reports on Kids Savings Account Bill

Communications — Thu, 01 Mar 2007 20:28:00 -0500

New America in the News:

SACRAMENTO, Calif. — Every child born in California would get a $500 savings account to start building a nest egg for college or a down payment for a home, under a state Senate bill introduced Wednesday.

California would be the first state with such a program, said David Lesher, a program director for the nonprofit New America Foundation, based in Washington. A national savings program has languished in Congress since 2005; a similar program has increased savings in Britain since 2002.

Under the bill, every child born in California after Jan. 1, 2008, would receive the money, regardless of their parents' income or immigration status. Recipients would have to repay the state's initial $500 investment once the turn 18.

The money may be used for three purposes: college or continuing education, a down payment on a home, or a retirement account.

For the complete article, please visit the San Francisco Chronicle website.

To read the proposal, please click here.

New America's Kids Savings Accounts in The Sacramento Bee

Communications — Thu, 01 Mar 2007 14:48:00 -0500

New America in the News:

Happy birthday, baby, here's $500 -- courtesy of California taxpayers.

Legislation announced Wed- nesday would provide a tax-free, long-term investment account to every baby born in California, regardless of the parents' financial or immigration status.

Senate Bill 752 is meant to persuade more families to invest for the future.

"If we ask people to invest in California, California must invest in its people," said Sen. Darrell Steinberg, D-Sacramento, who is co-authoring the bill with Republican Sen. Bob Dutton of Rancho Cucamonga.

"Every child ought to grow up knowing that they are worth investing in, from birth on," Steinberg said.

The proposed account, called Kids Investment and Development Savings, or KIDS, is meant to grow until the child turns 18 and could withdraw the money for a house, education, vocational training or to roll over into a retirement account...

Gov. Arnold Schwarzenegger has taken no position on SB 752, which needs support from two-thirds of each house -- meaning Democrats and Republicans -- to pass. The bill is sponsored by New America Foundation, a nonprofit and nonpartisan group...

For the complete article, please visit The Sacramento Bee website.