Treasurer Wants Newborns to Have Savings Accounts
May 1, 2010
The state treasurer's office is looking for ways to set up every baby born in Illinois with a savings account.
It would have a miraculous result in terms of college completion, says Robert Freidman of the Corporation for Enterprise Development: Children in families with savings dedicated to college education are four times more likely to complete college than those from families without such savings, and the rate is seven times more likely if the savings are in the name of the individual child.
The impact is also felt when it comes to eventual home ownership or entrepreneurship, based on pilot projects.
The treasurer's office and a 20-member task force are working on the hard part: How to set up these accounts with some money in them. The task force, created under state law, will report its findings to the General Assembly in the fall.