Fact Sheet Three Considerations for Children's Savings Accounts
Barbara Butrica
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A primary goal of children's savings accounts (CSAs) is to provide children, especially in low-income families, a strong economic footing. The ability to do that, however, depends on how CSAs are designed and how much families contribute. This study uses projections from the Urban Institute's DYNASIM model to estimate the wealth building impact of CSAs under alternative scenarios that vary the design features. The results highlight three points relevant for any asset-building proposal or program: incentives make a difference, targeting can be difficult, and nontaxability matters for all subsidies.
Research Areas Wealth and financial well-being Social safety net Children and youth
Tags Low-Income Home Energy Assistance Program (LIHEAP) Asset and debts Economic well-being Opportunity and ownership Financial stability Family savings
Policy Centers Income and Benefits Policy Center