June 29, 2021

Wyden Introduces Children’s Savings Accounts to Invest in Economic Future of Nation’s Children

Washington, D.C. – In an effort to ensure every child in America has an opportunity to be economically secure, Senators Ron Wyden, D-Ore., Bob Casey, D-Pa., and Chuck Schumer, D-N.Y., have introduced legislation that would establish children’s savings accounts, seeded annually with $500 in government contributions, for every child whose parent(s) or guardian earns less than $100,000 per year.

“Many Americans don’t begin to save for the future until later in life, making it far more difficult to get an education, start a business, buy a home, or retire,” Wyden, Chair of the Senate Finance Committee, said. “If children are on solid financial footing at a young age, they are far more likely to build a middle-class life. By investing up to $9,000 in savings accounts for our children, we’ll be setting them up for success throughout their lives. Oregon has lead the nation in helping working people save, and we have the opportunity to build on that success.”

Up to 50 percent of funds in the savings accounts established by the Young American Savers Act may be used for higher education expenses. Funds can also be rolled over into a retirement account, used to start a business or as a down payment to buy a home in the name of the account beneficiary.

Depending on years of eligibility, children could begin their adult lives with up to $9,000 in savings to help pay for post-secondary education, start a business, buy a home or save for long-term retirement.