College Savings Plans: A Platform for Inclusive and Progressive Child Development Accounts

Abstract

Child Development Accounts (CDAs) are savings or investment accounts for long-term developmental goals, including postsecondary education. Available as early as birth, CDAs aim to encourage lifelong asset accumulation. Sherraden and others have proposed a universal (i.e., for all children) and progressive (i.e., greatest subsidies for the poorest children) national CDA policy. A universal policy has many advantages, the most important of which are political stability and the creation of an asset-building culture. Progressive policy is essential if all children are to be included in lifelong asset building.