Hurricane Katrina graphically showed how many Americans live in abject poverty, one natural disaster away from losing the few assets they have.

But many Iowans have equally few assets to weather a similar financial setback, whether the cause is a natural disaster like Katrina or an economic one, such as losing a job. More than half of households in our state headed by adults 55 and older lack retirement assets, such as pensions and annuities. Among low-income households in Iowa headed by an adult over 55, nearly two out of three households have no retirement assets.

One new idea to address this savings crisis in our state and nation is called the ASPIRE Act. Under this bipartisan bill, every child issued a Social Security number in 2007 in America and beyond, including about 38,000 kids annually in Iowa, will automatically receive a $500 deposit into a "KIDS Account," and children living in households below national median income will receive an at-birth supplemental contribution of up to $500.

Low-income kids also will receive a dollar-for-dollar match, not to exceed $500 per year, for voluntary contributions to the accounts. These voluntary contributions, which may come from any source, are after-tax and limited to $1,000 per year. They may be used by family members, local organizations, corporations and others to reward academic achievement, community service or other good behavior.

KIDS Accounts would be created within the Federal Treasury Department in a system modeled after the highly successful federal Thrift Savings Plan, but account-holders would have the option to roll their accounts into a private-sector financial institution of their choice.

KIDS Accounts are premised on the idea that one cannot start early enough to save for college, a home and retirement. Why, after all, wait until someone finishes high school or college to begin saving? Why miss those first 20 or so years of accumulation? Why not teach kids financial knowledge the way we teach them language and music--starting as early as possible?

It is precisely for these reasons that the United Kingdom recently launched its "Child Trust Fund" program, which establishes a universal, but progressively funded savings account at birth for each of the 700,000 kids born in the U.K. every year.

KIDS Accounts will enable generations of kids to build a financially responsible, brighter and more secure future. Young adults equipped with financial knowledge and "mobility assets" will need government less throughout their lives, thus reducing government outlays over the long term.

Previous efforts by the United States to broaden asset ownership were well worth the investment: The GI Bill returned $7 to the nation for every $1 invested. A full quarter of adults living today have a legacy of asset ownership directly traceable to the Homestead Act.

Sen. Charles Grassley, as head of the Senate Finance Committee, should give this bill serious consideration.

KIDS Accounts are the Homestead Act for the 21st century and a bold idea that will benefit Iowans for generations to come.