Children’s Savings Accounts Help States Create ‘College-Going Culture’

By Marsha Mercer, Stateline – Free money for college may sound like an easy sell, but when parents of newborns in Maine were offered a $500 grant for their infants’ college education, fewer than half signed up. Even worse, a study found that less educated, lower-income families – those that could benefit most — were least likely to take the money. So last year, Maine changed its strategy. Today, each of the roughly 12,500 babies born in Maine each year receives a $500 grant deposited automatically in a college savings account. For decades, private foundations have promoted the idea of children’s savings accounts to help families imagine and save for their children’s college education. Only recently has it taken root in states, which are targeting the youngest citizens. The seed amounts tend to be small, but they can make a big difference, researchers say. Children who have even small...

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Why Don’t Americans Save Their Money?

We must kill Social Security in order to save retirement by Veronique de Rugy – One-third of Americans have nothing saved for retirement, according to a study published in August by the financial data aggregator Bankrate. That grim factoid joined a growing chorus of reports highlighting Americans’ dismal savings habits. In 2013, the National Institute of Retirement Security (NIRS) determined that 84 percent of Americans are falling short of “reasonable” retirement savings targets. Data from the Center for Retirement Research at Boston College reflect a similar trend, and a recent PBS poll found that 92 percent of Americans believe we face a retirement crisis and that government should act now. The reality is not quite as grim as these reports suggest. The American Enterprise Institute’s Andrew Biggs took a hard look at the NIRS numbers and concluded that “the substance of the NIRS study should give pause to anyone considering drastic...

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