Building Brighter Futures: Children’s Savings Accounts in Illinois, a report from Heartland...Read more
Children’s Savings Accounts
About this Policy
All children should have the opportunity to thrive. A Universal Children’s Savings Account (CSA) program provides both the hope and the means to expand educational and economic opportunity for Illinois families. With a CSA provided at birth, every child will start off on the right foot.
During the 2017 Legislative Session we advanced Universal CSA Legislation.While we gained bipartisan support in both the House and Senate, the legislation didn’t make it over the finish line in 2017. We will be working to move this bill forward in the coming years.
HB3691 will automatically open a 529 college savings account at birth for every child born in the state. The account will be seeded with an initial $50. Low- and moderate-income families will be encouraged to save through savings incentives – a one-to-one dollar match up to $150 per year. Download the fact sheet and FAQ to learn more.
Benefits of a CSA Program
CSAs Create a Pathway to a College Degree for More Children: Low- and moderate-income children with college savings of just $1 – $499 are 3 times more likely to attend college and 4 times more likely to graduate from college.
CSAs Support Early Childhood Development & Maternal Health: Accumulating savings within a household positively affects a parent’s outlook on their child’s future. This real hope for the future has been shown to reduce maternal depression symptoms and support early childhood development. Children given a CSA at birth score better on socio-emotional development indicators than their counterparts who did not receive a CSA.
CSAs Result in Financially Capable Children: Children enrolled in a CSA program and receiving financial education scored significantly higher on financial capability tests than those receiving only the education.
CSAs Promote Saving Behavior: CSAs give families the opportunity to practice the skills that lead to financial well-being.
CSAs Create Economic Stability: CSAs increase the number of qualified workers available for jobs that require postsecondary education – resulting in a more competitive economy for Illinois.
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