The America Saving for Personal Investment, Retirement, and Education Act (“The ASPIRE Act”) would set up a special account at birth for every child in America. The "Lifetime Savings Account" (LSA) can later be used to pursue post-secondary education, buy a first home, or build up a nest-egg for retirement. The ASPIRE Act calls for each child’s LSA to be endowed with a one-time $500 contribution at birth. Children living in households with incomes below national median income will be eligible for both a supplemental contribution of up to $500 at birth as well as the opportunity to earn up to $500 per year in matching funds for amounts saved in the account. Financial education would be offered in conjunction with the accounts.
In the 111th Congress, the ASPIRE Act was H.R. 4682 in the House and was originally introduced by Rep. Patrick Kennedy (D-RI), Rep. Thomas Petri (R-WI) and Rep. Jim Cooper (D-TN). In the Senate, the bill was S. 3577 and was originally introduced by Senator Charles Schumer (D-NY) and Senator Christopher Dodd (D-CT). The bill is awaiting introduction in the 112th Congress.
For more information about the ASPIRE Act you can read and download the following materials:
Additional information on the ASPIRE Act includes:
Promoting the Vision --The history of lifetime savings accounts, including the contributions of the SEED Initiative by Reid Cramer.
Children's Savings Accounts: The Case for for Creating a Lifelong Savings Platform at Birth as a Foundation for a "Save-and-Invest" Economy by Reid Cramer and David Newville.
The United Kingdom has had a universal system of children's savings accounts in place for a number of years. To learn more about the Child Trust Fund, please click here.
