Center on Assets, Education, and Inclusion

The goal of the conference Using Wealth and Income Policies to Forge a New Social Contract: Giving People Something to Live For (short title: Financial Independence), held on September 16 and 17, 2024, in Washington, D.C., was to bring together experts from the asset and income fields to share theory, evidence, and best practices as part of an effort to begin a more earnest conversation about the development of a new social contract designed to end poverty. The conference was divided into four sessions. Sessions One and Two focused on Children’s Savings Accounts and Baby Bonds as promising asset-build- ing policy proposals for solving the wealth component of poverty. Session Three focused on Unconditional Cash Transfers, the Child Tax Credit, and Child Allowances as promising income policy proposals for solving the income component of poverty. Because poverty has both an income and asset component, Session Four discussed why a core component of a new social contract to end poverty must include combining these poli- cies and coalitions.

In this talk I want to make the point that CSAs have become much more than a financial vehicle for individuals to save in. This matters. First, it matters for understanding how to assess whether CSA programs are effective. Second, it matters for combating the myth that building wealth through CSAs continues to be primarily about personal saving. This myth has placed a roadblock between CSA and Baby Bonds movements being able to coalesce around a common financial infrastructure for building wealth for children and their families.