Children's Savings Basics

Why Children's Savings

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 Savings Accounts (CSAs), also known as children’s development 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 CSAs can make on children and families.

How It Works

CSAs 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 CSAs are used for financing higher education, starting a small business, buying a home or funding retirement. More information about CSAs is available in our Resource Library.

Financial Education

Training to help families acquire the information and skills neces¬sary to take control of their personal finance– is a core component of CSA initiatives. Age-appropriate financial education encourages saving behavior and provides hands-on learning opportunities for young accountholders. Learn more about connecting savings and financial education for children and youth.

From Dream to Reality

More than a dream, Children’s Savings 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 CSAs 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 CSAs to scale.

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