Using baby bonds to try to close the wealth gap

New York City and Connecticut are starting ‘baby bond’ programs to address wealth inequality, according to a recent report. The states will gift publicly financed savings bonds to children. In Connecticut, the bonds will total $3,200 each and will be distributed to about 16,000 Medicaid eligible children each year. New York City is funding $100 college savings accounts for all kindergarten students in public schools. In Connecticut, each bond is projected to be worth about $10,000 when the child is 18. The bonds can also be used to pay for school, invest in a business, buy a house, or save for retirement.

Leave a Reply

Your email address will not be published. Required fields are marked *