We’ve recently joined with CFED, a national organization dedicated to expanding economic opportunity, and the Oklahoma Asset Building Coalition, in releasing the 2009-2010 Assets and Opportunity Scorecard. Our earlier post summarized the Oklahoma results, as did several media reports.

One area where Oklahoma needs to do better is our 529 college savings plan. Section 529 of the federal tax code allows families to set aside savings in a special account overseen by the state government. Interest earnings on the account are not subject to the federal or state income tax. CFED points out that: Read the rest of this entry »

The Obama administration recently announced a series of measures aimed at making it easier for Americans to save.  As the New York Times article on the initiative noted, the measures are all rooted in research from the field of behavioral economics:

One key finding in that research is that people are more likely to contribute to a retirement savings account, like an employer-sponsored 401(k) plan, if they are enrolled automatically. Workers have usually had to sign up for the plan, something that large percentages of people either postponed or never did at all.

The Administration’s measures will: Read the rest of this entry »

Last week I was fortunate enough to attend the first Conference on Children and Youth Savings sponsored by CFED, a national organization dedicated to expanding economic opportunity for all Americans. According to CFED,

People who own assets–such as a savings account–are more likely to have a more positive outlook and higher expectations for their futures and the futures of their children.

Children and youth savings accounts are created, mostly for low- and moderate-income children, at birth (or later in some programs) and initially funded with a small government contribution. As the child grows, additional contributions from family, friends, and, in some cases governments, help the account grow. Some programs limit use of the funds to education, while others offer broader opportunities or no limitations at all once the child reaches age 18. The theory behind children and youth savings accounts is:

• that low-income students (and their parents) will begin to see college as an achievable and affordable goal;
• that a savings habit learned in childhood is an asset for life;
• that youth savings will build assets for education, home ownership, and business start-ups; and
• that benefits of saving and investing by children help grow community and national economies.

CFED has been the main player in the SEED Initiative, a 10-year program to develop, test, inform, and promote children savings accounts. SEED incorporates 12 demonstration projects, including one in Oklahoma. The conference brought together a couple of hundred local service providers, funding agencies, government managers, and researchers in an effort to assess SEED and other efforts and to help figure out what comes next.

I got a decidedly mixed picture about children’s savings accounts from this experience. Here’s the good news: Read the rest of this entry »