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.
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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