Lessons from SEED, a National Demonstration of Child Development Accounts
A nationwide system of Child Development Accounts (CDAs) established as early as birth can lead to lifelong savings, raise college expectations and affordability, and serve as a basis for more stable and productive financial lives for American families, according to a new report.
The report, “Lessons from SEED, a National Demonstration of Child Development Accounts,” is based on the experience of more than 1,171 children of all ages and their families who participated in pioneering CDA pilot programs in 12 states and communities. This pilot demonstration showed that, given the opportunity, families in some of the poorest communities in our country, would save for their child’s college education and future. The programs tested CDAs, savings or investing accounts that begin as early as birth and allow parents and children to accumulate savings for college, homeownership or business initiatives.
The Saving for Education, Entrepreneurship, and Downpayment Initiative, or SEED, is a 10-year, multi-million dollar national policy, practice and research endeavor to develop, test and promote matched savings accounts and financial education for children and youth. SEED was designed to set the stage for universal, progressive American policy for asset building among children, youth and families. It was funded by 12 national foundations, including the Ford and Citi Foundations.
