Children's Savings Basics

Our Vision

Imagine a world in which every child in America grew up knowing that he or she had a nest egg to attend college, buy a home or start a business. Children’s Development Accounts (CDAs), also known as children’s savings accounts, are an innovative policy proposal that can make that world possible. Learn more about the promise of children’s savings and the life-changing impact that CDAs can make on children and families.

How It Works

CDAs are long-term asset-building accounts, established for children as early as birth and allowed to grow over their lifetime. Accounts are seeded with an initial deposit and built by contributions from family, friends and the children themselves. Accounts are augmented by savings matches and/or other incentives, and gain meaning as young accountholders and their families engage in age‐appropriate financial education. At age 18, the savings in CDAs are used for financing higher education, starting a small business, buying a home or funding retirement. More information about CDAs is available in our Resource Library.

From Dream to Reality

More than a dream, Children’s Development Accounts are becoming a reality in the United States and elsewhere. The Saving for Education, Entrepreneurship, and Downpayment (SEED) Policy and Practice Initiative was a 10-year field project coordinated by CFED that developed and tested incentivized savings accounts and financial education for children and youth. This initiative was the first large test of CDAs as a tool to promote economic independence in the United States. Learn more about the SEED Initiative.

Currently, CFED is developing a number of policy and practice initiatives that seek to bring savings opportunities to thousands more children and youth through significantly larger programs that will build on SEED’s lessons and take CDAs to scale.

For more information, drop a note to cdainfo@cfed.org.