Baby bonds or automatic trust funds could help get rid of student debt

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Giving babies a government trust fund at birth could help get rid of student debt and build wealth, report says

Giving babies their own bank accounts is good for the whole economy, a new report finds — and it could give Americans a big leg up on wealth building. on the benefits of"Baby Bonds." These are bank accounts provided by the federal government to children at birth with a certain amount of money that would be supplemented each year based on household income.

"The transition to adulthood is a challenging time for everyone. Ensuring that children can enter this defining stage of life with a nest egg would open up a world of possibilities and provide new pathways to building wealth," Beyer said in a."And the positive effects of Baby Bonds are not limited to only the children and families who directly benefit from these accounts: When young adults can pursue education, start businesses and buy homes, it creates economy-wide benefits.

As the report said, giving people increased opportunities to pursue a higher education"can directly increase their lifetime earnings." from the Center for Social Development at Washington University in St. Louis found that having a savings accounts containing less than $500 tripled the likelihood of a student attending college and increased the likelihood that student would graduate 4.5 times more than someone that did not have a savings account.

Currently, high tuition prices are not only keeping some people from enrolling in college in the first place — those who do enroll can end up borrowing much more debt than they can afford to pay off, keeping themin a cycle of repayment. While President Joe Biden in August announced a plan to forgive up to $20,000 in student debt for federal borrowers, it is currently held up in court, and it is not a permanent solution to address college affordability issues going forward.

In addition, as the report said, the bonds could be used as seed money to start a business. It would put homeownership more into reach by helping with down payments, and purchasing a home sooner in life will lead to a greater return on the initial investment as the value of the house increases over time.

Source: News Formal (newsformal.com)

 

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😹😹😹😹😹

Ha ha, money money money

Oh yes please find new ways to spend more money we don't have on things that shouldn't need to exist.

Wait. What? Since when is the govt in the banking biz? China and Russia yes, but NOT HERE! Dafuzz dbongino

UBI Universal Baby Income

I think there’s already a trust fund formed at birth 👀

True because paying fees in schools now is very hard

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