These evidence-based principles are the result of deliberations among policy experts who have years of experience studying, designing, and testing various forms of early life wealth-building policy. As always, opinions may differ. The aim is to emphasize a wide foundation of shared vision and principles as federal policy development moves forward.

• Start at the beginning
  • Enroll babies at birth. Families are contacted around birth and made aware of the program.
  • Enroll all children up to age 18 at the time the legislation goes into effect, insofar as possible.
• Ensure inclusion and reduce wealth inequities
  • Set up automatic enrollment. Babies are automatically enrolled by local, state, or federal government.
  • Create universal participation with financial progressivity. Including all children builds national footing and policy stability. The focus of the program is low- and moderate-income families, with the largest benefit—both in direct expenditures and tax expenditures—going to families with the least means.
  • Measurably reduce racial wealth inequities as well as other wealth inequities.
• Make real investments
  • Large, initial federal deposit for the benefit of participating children creates a financial anchor for the policy, with growth over time. There is a logical connection between the size of the initial deposit and the ultimate target size of the fund, with considerations for reasonable investment growth.
  • Consider the opportunity for ongoing deposits from other sources, while maintaining emphasis on the federal deposit.
  • Investments grow over time in the context of fiduciary responsibility based on a prudent balance of risk and reward.
    • Consider financial guidance, including a default investment option.
    • Consider some form of protection against loss of family contributions, if family contributions are allowed.
  • Provide opportunities for participants to access financial planning and additional supports specific to allowable uses of funds to prepare individuals for the future.
• Structure, scale, and transparency
  • Create a centralized savings plan structure to enable coherence, scale, low fees, investment growth, sustainability, and a database for policy evidence.
  • Allow flexibility and detail in accounting and reporting. The policy may choose to partition different deposit flows to account and report on each flow separately (e.g., public flows or reparation flows).
• Ease of access and use
  • Allow use of funds by participants starting at age 18 to invest in wealth building (e.g., education and training, entrepreneurship, homeownership, retirement security).
  • Minimize limitations on accessing funds starting at age 18. This includes portability and protection of federal account assets across geographical boundaries and other changes in personal or economic circumstances.
  • Exclude from calculations means-tested public benefits and taxation while funds are held by the government and at the time of distribution.
• Support vertical connections
  • Facilitate state and community engagement. Encourage and support ongoing community partnerships and streamline integration with state and local programs where possible. A federal program should support local community partnerships and engagement.
    • Consider federal funding grants to incentivize states to actively engage with the local community.
    • Consider federal funding grants to incentivize localities to actively engage with the community.

CONTRIBUTORS

Following a suggestion by Michael Sherraden and Trina Shanks, the Urban Institute hosted a convening on October 19, 2023, with researchers and policymakers for the purpose of creating these principles. The principles were compiled at the convening and via email thereafter by individuals listed below. We are grateful to colleagues at the Center for Social Development at Washington University, St. Louis, and the Center for Equitable Family & Community Well-Being at the University of Michigan for their contributions to the development of this event.

• Joanna Ain, Associate Director of Policy, Prosperity Now
• Kevin Alvarez, Deputy Chief of Staff, Director of Policy, State of Connecticut, Office of the Treasurer
• Ofronama Biu, Principal Research Associate, Urban Institute
• Ray Boshara, Legislative Fellow, Office of Senator Bob Casey (D-PA)
• Leila Bozorg, Chief of Strategy & Policy, NYC Kids RISE
• Madeline Brown, Senior Policy Associate, Urban Institute
• Margaret Clancy, Policy Director and College Savings Initiative Director, Center for Social Development, Brown School, Washington University in St. Louis
• Willie Elliot, Professor of Social Work, Director, Joint Doctoral Program in Social Work and Social Science
• Jason Ewas, Policy Manager, Inclusive Financial System, Aspen FSP
• Darrick Hamilton, Founding Director, Institute on Race, Power and Political Economy, The New School
• Jin Huang, Professor, Social Work, School of Social Work, St. Louis University
• Corey Husak, Policy Advisor, Office of Senator Bob Casey (D-PA)
• Shira Markoff, Senior Policy Fellow, Prosperity Now
• Julio Martinez, Director, CalKids
• Massachusetts Office of Economic Empowerment, represented by Daphna Gluck, Director of Program Evaluation
• Signe-Mary McKernan, Vice President, Center on Labor and Human Populations, Urban Institute
• Julie Peachey, Deputy State Treasurer, Consumer Programs, Pennsylvania Treasury
• Colleen Quint, President & CEO, Alfond Scholarship Foundation
• Melissa Sanchez, Policy Advisor, Office of Senator Cory Booker (D-NJ)
• Trina Shanks, Harold R. Johnson Collegiate Professor of Social Work, University of Michigan and Urban Institute Non-Resident Fellow
• Michael Sherraden, George Warren Brown Distinguished University Professor, Washington University in St Louis