National Survey Shows Strong Support for Children’s Savings Accounts

    Washington,. D.C., October 10—A bipartisan coalition of policymakers introduced the America Saving for Personal Investment, Retirement, and Education Act (“The ASPIRE Act”) in the House of Representatives last week. The ASPIRE Act would create a “KIDS Account” at birth for every child in America which they can later use to pursue postsecondary education, buy their first home, or build up a nest egg for retirement. Though similar in some regards to a proposal for Baby Bonds first proposed last week by Sen. Hillary Clinton, the concept of Kids Accounts proposed in the ASPIRE Act has been carefully tested and researched over the past few years. Initial research indicates that Kids Accounts can be transforming for children and families across cultural, racial, and income lines. Moreover, new polling data find that voters, especially parents, strongly support establishing children’s savings accounts for every child, according to the CFED (Corporation for Enterprise Development), a national organization dedicated to expanding economic opportunity.

    The ASPIRE Act calls for every child’s KIDS Account to be endowed with a onetime $500 contribution at birth. Children living in households with incomes below the 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 also be offered in conjunction with the accounts. Representatives Patrick Kennedy (D-R.I.), Phil English (R-Pa.), Jim Cooper (D-Tenn.), Rahm Emanuel (D-Ill.), and Tom Petri (R-Wis.) introduced the ASPIRE Act in the House last week. Sen. Charles Schumer (D-N.Y.) will lead the introduction in the Senate.

    A national survey conducted by Peter D. Hart Research Associates earlier this year shows that voters strongly support establishing KIDS accounts or children’s savings accounts for children in America. More than two-thirds (69 percent of voters and 78 percent of parents favor children’s savings accounts upon exposure to the concept, and just 22 percent of voters and 15 percent of parents oppose the idea). Broad support exists for children’s savings accounts across party affiliation, political ideology, and regions of the country. Nearly three quarters (74 percent) of self-described liberals favor children’s savings accounts, as do 72 percent of moderates and 62 percent  of conservatives.

    Twelve community organizations across the country are part of the privately funded SEED (Savings for
Education, Entrepreneurship, and Down-payment) Initiative, which is testing the efficacy of children’s savings accounts that are much like the KIDS Accounts proposed under the ASPIRE Act. Through SEED, children and their families are proving that, when given the opportunity and financial education, they can and will save for their future; to date, 1,400 children and youth across the United States and Puerto Rico have accumulated nearly $1.6 million in their accounts in just under three years. On average, children have $1,332 in an account that is “seeded” as an investment for their future. Through the experience of these programs and careful research, the SEED Initiative aims to make this kind of account a reality for all children in America.

    “The SEED Initiative is a testament that Kids Accounts do work. Further research indicates that Kids Accounts can be transforming for children and families across cultural, racial, and income lines,” said Andrea Levere, CFED president. “By providing every child in America with a nest egg, we can give them a successful start in life.”

For more information on the survey findings, the SEED Initiative or the Aspire Act, visit
www.seed.cfed.org.