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Asset Building for Children (ABC) State Policy

Family ownership of even a few thousand dollars in assets can give low-income children not only a measure of economic security, but also a transformative sense of possibility and hope for the future. Asset Building for Children (ABC) is a multi-year CFED effort that seeks to provide savings and asset-building opportunities for all children in the United States through large-scale programs, innovative partnerships and effective public policy.

Children’s Development Accounts (CDAs) – also known as Children’s Savings Accounts – are one path toward this goal. In their ideal form, CDAs are established for children at birth and grow over their lifetimes. Accounts are seeded with an initial deposit; built by contributions from family, friends and the children themselves; augmented by savings matches or other incentives; and accompanied by age‐appropriate financial education. Starting at age 18, accounts may be used for asset-building investments in post-secondary education, entrepreneurship, homeownership and/or retirement security.

In the last several years, a growing number of states have passed or introduced children’s savings policy proposals. While no state has yet implemented a universal system of progressive savings accounts for children, there is solid state precedent on which to build.

Universal children’s account proposals: Legislation has been introduced in three states that would create accounts for all newborns. No universal children's savings policy has been enacted thus far, but strides have been made with experimental initiatives and nongovernmental funding. Learn more about state-level opportunities to provide accounts for every child.

Matching 529 programs: As a potential vehicle for children’s savings policy, several states currently offer savings matches for participants in their states' 529 college savings plans. The administrative details, amount and progressivity of matching deposits vary widely by state. Learn more about state policies to incentivize college savings.

State-level advocacy: Advocates in six states – Arkansas, Illinois, Montana, North Carolina, Oklahoma, and Texas – are working in partnership with CFED o develop state policies that create or expand progressive savings opportunities for children. The goal of these partnerships is to invest in state efforts that have a real possibility for a public policy breakthrough within five years. These policy partners lead state policy development, advocacy efforts and constituency organizing in their states.