ASPIRE Act Introduced in the Senate

Senator Charles Schumer and Senator Chris Dodd have introduced the ASPIRE Act of 2010. The bill is S. 3577 and is a companion measure to the House version, H.R. 4682, which has Reps. Kennedy, Petri and Cooper in the lead.

The bill would create a universal system of savings accounts, one for each child born in the U.S. and provide a magnet for savings and a springboard to a brighter future for millions of American children. Currently, one in three children grow up in households that lack the assets to weather an emergency or make productive investments in their future. Without a cushion, and without much hope of building a financially secure future the immediate pressure to survive makes it nearly impossible to imagine planning for college and building a better life. Research has shown that when a family has even a small amount of assets they gain not only a sense of financial security, but they are able to think differently about the future, to plan for it, save for it, and embrace the opportunities that are available to them.

Here's what Senator Schumer had to say in an earlier press release, announcing his intention to introduce the bill:

“At a time of record college prices and financial uncertainty, providing seed money so our children start to save early is more important than ever,” Schumer said.  “Providing these lifetime savings accounts will take some of the burden of paying for college off the shoulders of struggling middle class families, make it easier for account holders to buy homes, and promote long term savings. Having a savings account will ensure that children have resources to draw on when they turn 18, and will provide them with confidence and increased opportunities.”

That's why we support the ASPIRE Act, because it opens the doors of opportunity to millions of american children who currently have the odds stacked directly against them. We're also pleased to be a member of the Child Savings Account Coalition, a group of organizations that have banded together to support the "goal of alleviating poverty, promoting sound financial awareness and social behavior and inspiring a sense of hope and opportunity for every child." The Coalition includes the UNCF, CFED, the Aspen Institute, Catholic Charities USA, Bread for the World, and First Focus, and we're very pleased to have a role in standing by those organizations, and the other organizations who have signed on to the Coalition.

There's an important conversation to be had in the US about the role of government, the future of the economy and the role that savings plays. The government expends an enormous amount of resources promoting savings and wealth development, though mostly that is geared toward wealthy individuals. One way to grow a more stable and productive economy is to incent greater savings rates and greater participation in saving from Americans. The ASPIRE Act can be a critical component in helping to create not just increased household financial security, but greater savings rates and higher participation rates, and a robust, secure national economy.

Thanks to Sen. Schumer and Sen. Dodd for their leadership on this issue, we look forward to continuing to push for a country where savings, thrift, and productive investments are encouraged and rewarded for all Americans.