Children's Savings Accounts
In October 2007, a bipartisan coalition in Congress 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), Rep. Rahm Emanuel (D-IL) and Tom Petri (R-WI) introduced the bill as HR 3740 in the House. Sen. Schumer (D-NY) will be introducing a similar bill in the Senate.
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.
More information about the ASPIRE Act of 2007 is available below, including a brief summary of the bill, a citizen's guide which includes a detailed explanation of each title, and answers to frequently asked questions.
More on KIDS Accounts/ASPIRE
Representative Harold Ford, Jr. in The Washington Post
Articles
| Article | Date |
|---|---|
| Baby Bonds Pay Bipartisan Dividends | October 16, 2007 |
| Kids' Accounts Warrant Debate | March 22, 2007 |
| Going for Broke | March 6, 2007 |
| Invest $500 in Every NY Newborn | August 17, 2006 |
| Investing Now in the Future of Our Children | November 25, 2005 |
| Start Government-Funded Savings Accounts for Kids | November 5, 2005 |
| Share the Ownership | February 8, 2005 |
| Fighting Poverty: Aspiring For Ownership | February 7, 2005 |
| For Every Child, a Stake in America | July 22, 2003 |
| The $6,000 Solution | February 1, 2003 |
Policy Papers
| Title | Date |
|---|---|
| A Citizen's Guide to the ASPIRE Act | October 2007 |
| ASPIRE Act Bill Summary | October 2007 |
| ASPIRE Act Frequently Asked Questions | October 2007 |
| Net Worth at Birth | March 2004 |
| American Stakeholder Accounts | June 2003 |
Events
| Event | Date |
|---|---|
| KIDS Accounts | October 3, 2007 |
| Children's Savings Accounts | September 27, 2006 |
| Solutions for Increasing Savings, Ownership and Retirement Security | June 14, 2005 |
| KIDS Accounts: Long-Lasting Solutions to Financial Education, Savings, and Retirement Security | May 26, 2005 |
| Bipartisan Group Introduces "KIDS Account" Bill Providing $500 Savings Accounts for All American Children | April 21, 2005 |
| Learning from the U.K.? Building Financial Security for American Children | October 28, 2003 |
Press
| Headline | Date |
|---|---|
| Ray Boshara in The Record (NJ) on Child Savings Accounts | October 22, 2007 |
| Ray Boshara and the ASPIRE Act in the Los Angeles Times | October 7, 2007 |
| Bipartisan Lawmakers Introduce 'KIDS Account' Bill to Build Savings, Financial Education, and Retirement Security | October 5, 2007 |
| Marketplace Interviews Ray Boshara on Kids' Savings | October 3, 2007 |
| Ray Boshara Interviews with CNBC on Hillary's "Baby Bonds" | October 1, 2007 |
| Ray Boshara Discusses 'Baby Bonds' and Asset Reform on ABC News | September 28, 2007 |
| Columnist Neal Peirce Extols Ray Boshara, Kids Savings Accounts | June 18, 2007 |
| American Banker Reports on Kids Savings Accounts | April 16, 2007 |
| Daniel Weintraub Writes on Immigration and Kids Savings Accounts | March 6, 2007 |
| David Lesher Discusses Kids' Accounts on Sacramento's KXTV | March 2, 2007 |
