Washington, D.C.— Yesterday, Rep. Joe Crowley (D-N.Y.) and Rep. Keith Ellison (D-M.N.) introduced legislation to create universal, progressive child savings accounts—an idea long championed by New America’s Asset Building Program.
The proposed USAccounts program would put children and families in a better position to realize lifetimes of financial security and success through savings accounts funded by a combination of federal seed money and matched family contributions. New America’s Asset Building Program commends Rep. Crowley and Rep. Ellison’s legislation and their commitment to the financial futures of American children.
As previous research from the Reid Cramer, Rachel Black and Justin King of the Asset Building Program shows, child savings accounts promote increased savings, responsible financial behavior and achievement that can facilitate the climb up the economic ladder.
The legislation introduced yesterday is an important step in improving the future of financial prosperity.
“USAccounts offer a promising pathway for recharging the American Dream,” Asset Building Program Director Reid Cramer said. “If this proposal is enacted, every child will have a place to save for their future and will know that their country, community and family are invested in their success.”
“By connecting children to accounts early in life and providing incentives to save, USAccounts will provide a means to conquer financial exclusion, promote financial capability, and provide an alternative to accessing higher education that does not dependent exclusively on student debt.”