“Investing in Our Future”
Historically, minority children face daunting barriers to upward mobility, and their prospects have been further eroded by the Great Recession. However evidence shows us that low-income households escape poverty by saving and investing in assets, an essential message to transmit to their children.
Child$ave! encourages families and the community to contribute to Children’s Development Accounts (CDAs), matching funds that encourage youth to plan for prosperity by furthering their education and accruing other assets. Through Child$ave! targeted Alexandria children will automatically have a CDA established in their name for $100. This initial amount will be complemented by matching contributions in a ratio of 2:1 for additional deposits. Restrictions on Child$ave! accounts are few:
· The account is in the name of the child and cannot be accessed by an adult.
· Contributions can be from any private source with businesses encouraged to establish accounts bearing their name, such as, “Jonathan Swift, a Safeway Scholar.”
· Deposits can be withdrawn beginning at age 18.
· Accounts can be used to pay for post-secondary education, purchasing a home, or starting a business.
Child$ave! addresses the very real obstacles confronted by poor children. Historically, minority children face daunting barriers to upward mobility. When we invest in our youth and the next generation of children living in poverty prospers, economic inequality will diminish and their chances for success increase.
The objective of Child$ave! is to establish accounts for all children residing at Brent Place, a high rise apartment building in the City of Alexandria. Residents are low income, primarily minority or foreign-born families with approximately 200 children residing in the building. This would be accomplished by covering one-fourth of children in each of the first four years of the project. Including administration as well as initial deposits and matching funds, the cost of Child$ave! would be about $50,000 over the first four years.
David Stoesz, Ph.D.