Since 1991, a new policy discussion has arisen in the United States and other countries, focusing on building assets as a complement to traditional social policy based on income. In fact, asset-based policy with large public subsidies already existed (and still exists) in the United States. But the policy is regressive, benefiting the rich far more than the poor. The goal should be a universal, progressive, and lifelong asset-based policy. One promising pathway may be child development accounts (CDAs) beginning at birth, with greater public deposits for the poorest children. If all children had an account, then eventually this could grow into a universal public policy across the life course.
Article
Asset Building: Toward Inclusive Policy
Michael Sherraden, Lissa Johnson, Margaret M. Clancy, Sondra G. Beverly, Margaret Sherrard Sherraden, Mark Schreiner, William Elliott, Trina R. Williams Shanks, Deborah Adams, Jami Curley, Jin Huang, Michal Grinstein-Weiss, Yunju Nam, Min Zhan, and Chang-Keun Han
Article
Children’s Development Accounts (Children's Savings Accounts)
William Elliot III and Melinda Lewis
Children’s Development Accounts (CDAs) are a policy vehicle for allocating intellectual and financial resources to low- and moderate-income children. Unlike basic savings accounts, CDAs leverage investments by individuals, families, and, sometimes, third parties. By giving families savings incentives and building universal and progressive vehicles for saving, CDAs may improve the financial health of low-income families and the educational outcomes of their children, reducing or even eliminating asset advantages currently enjoyed by wealthier families.
