ASPIRE Act/KIDS Accounts: Press

ASPIRE Act | U.S. News & World Report

Cecille Isidro — Tue, 06 Oct 2009 06:17:00 -0400

The purpose of the accounts, says Reid Cramer, director of the Asset Building Program at the New America Foundation, is to get people invested in their future. ...

Lifetime Savings Accounts Plan Could Liberate Future Generations | San Francisco Examiner

Cecille Isidro — Fri, 17 Jul 2009 12:18:00 -0400

What if every child started out in life with his or her own personal savings program for college, for first-time home purchases and for retirement?

A savings program started at birth has more years to earn and accumulate interest, resulting in a bigger nest egg through time. Granting every child such an opportunity would result in broader and more equal ownership of savings and capital for each citizen. Such widespread capital ownership would empower and liberate every American in their personal pursuit of happiness and the American Dream.

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 The Record (NJ) on Child Savings Accounts

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

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… more

Ray Boshara and the ASPIRE Act in the Los Angeles Times

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

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… more

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. The Senate bill will be led by Senator Charles Schumer (D-NY).

“There couldn’t be a better time to re-establish a savings culture in America,” remarked Ray Boshara, Vice President and Director of New America Foundation’s Asset Building Program. “With a negative personal savings rate two years in a row, and one in seven Americans now dealing with a debt collector, we need to put every child – and especially the 39% of kids who grow up in homes with no assets – on a path of lifetime savings and wealth accumulation.”

The ASPIRE Act calls for each child’s KIDS Account to be endowed with a one-time $500 contribution at birth. Children living in households with incomes below national median income will be eligible for both a supplemental contribution of up to $500 at birth as well as the opportunity to earn $500 per year in matching funds for amounts saved in the account. Financial education would be offered in conjunction with the accounts, which later can be used to pay for post-secondary education, a first home, or retirement.

“New America commends this visionary group of legislators who’ve crossed party lines in support of building a nation of savers, investors, and owners. These kids – like Jamar Nembard, a 10th grade student from Delaware participating in the SEED Initiative, who joined policymakers at a forum on KIDS Accounts on Capitol Hill on Wednesday -- will be better positioned as young adults to grow the American economy in the 21st century,” said Boshara. “We also thank and commend those diverse, forward-looking persons and organizations who stood up at Wednesday’s forum in support of establishing savings at birth for all kids – the United Way of America, Edelman Financial Services, the Institute for American Values, Junior Achievement Worldwide, David Brooks of the New York Times, and Citi’s Office of Financial Education. New America greatly values their leadership and partnership in this critical effort.”

A detailed summary and other information on the ASPIRE Act can be found at www.aspireact.org.

Marketplace Interviews Ray Boshara on Kids' Savings

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

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.

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

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

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.

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

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

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,… more

Columnist Neal Peirce Extols Ray Boshara, Kids Savings Accounts

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

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… more

American Banker Reports on Kids Savings Accounts

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

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… more

Daniel Weintraub Writes on Immigration and Kids Savings Accounts

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

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… more

David Lesher Discusses Kids' Accounts on Sacramento's KXTV

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

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

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… more

San Francisco Chronicle Reports on Kids Savings Account Bill

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

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

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.

American Banker Profiles New America's Ten Big Ideas Event

Communications — Mon, 05 Feb 2007 22:48:00 -0500

Senators from both sides of the aisle addressed a public policy institute last week on issues that could shape banking policy. Democratic Sen. Hillary Clinton and Republican Sen. Lindsey Graham spoke to members of the New America Foundation about the need for bipartisan compromise on issues like a federal savings account and a government-run investment plan.An "American Stakeholder Account," one of the foundation's Ten Big Ideas for a New America, would start with $6,000 for every child at birth. With dollar-for-dollar matching contributions of up to $500 per year, the accounts would foster a savings culture."It's a message to every family that as they invest in their kids, America will invest in them as well," said Sen. Clinton of New York, who is running for the 2008 Democratic presidential nomination. "We can give every child a vested interest in our financial system, reverse our terribly low national savings rate, and give every child an opportunity to begin adulthood with money in the bank."The group also advocated a "Universal 401(k)" plan that would be federally managed, with the government matching voluntary contributions. Instead of asking workers to opt in, participation would be the… more

NY Times Profiles New America's Ten Big Ideas Event with Sen. Clinton

Communications — Wed, 31 Jan 2007 19:43:00 -0500

At a conference devoted to “big ideas” for the nation’s future, Senator Hillary Rodham Clinton said this morning that compromise need to be “a goal – not a dirty word” in politics and government, remarks that reflect her own pragmatic style but that are more moderate than the views of some of her rivals and hard-core elements of the Democratic primary electorate.With some of her 2008 presidential opponents offering sharply partisan messages, and another of them, Senator Barack Obama of Illinois, seeking to transcend partisanship, Mrs. Clinton staked her place in the middle of the political rhetoric as she tries to appeal to broad swaths of the American electorate – even at the risk of alienating some Democratic primary voters.“I don’t think Americans are looking for some kind of group-hug bipartisanship – I think they’re looking for leaders who can get back to reality-based policy-making,” she said at the New America Foundation’s “Ten Big Ideas for a New America” conference in Washington, a few blocks from the Capitol.“The answer is not that we’re going to get rid of partisanship — as long as there are human beings jousting for influence and position,… more