A New Way to Prepare the Next Generation of New Yorkers
As my wife and I prepare to welcome our first child, we’re taking steps to ensure a bright future for our little one. We’ve started saving for their education, a crucial investment in their future. But what if everyone could do the same? What if New York City invested in the future of its citizens by investing in the next generation?
The Concept of Baby Bonds
Baby bonds are a seed account granted to every child at birth, placed in a trust as they grow, and used for education, buying a home, starting a business, or other purposes. With investments starting at just $1,000 per newborn, the next generation of New Yorkers will be better prepared to thrive.
A Proven Policy
Connecticut introduced a similar program last year, and nearly 8,000 babies have already qualified. Washington D.C. implemented bonds in 2021, and California has a pilot program. On the federal level, Senator Cory Booker and Representative Ayanna Presley introduced legislation for federal baby bonds in 2021 and again in 2023.
Reducing the Racial Wealth Gap
According to Morningstar research, baby bonds could potentially reduce the racial wealth gap by as much as two-thirds. In just one generation, this policy could dramatically change the trajectory of entire communities.
The Cost of Education
The price of education has skyrocketed in the past several decades, and only promises to continue its steady climb. Baby bonds could make sure that we’re the last generation to suffer this burden.
Unlocking Creativity and Entrepreneurship
Knowing you have some cushion allows you to take risks, to open up that new bakery or shoot that movie that you’ve been dreaming of. And we’re all better off when this happens – whether we have jobs on set or we simply get to eat those delicious croissants.
A City That Supports Families
Baby bonds can help extinguish the worry that many of my peers have: that New York isn’t a place where you can raise kids. Investing in our next generation will make us a more equitable, smarter, and dynamic city.
A Popular and Possible Policy
In a recent YouGov survey, 61 percent of voters supported some form of baby bonds. Our neighbors in Connecticut have proven so, and years of research across disciplines show the positive ROI of increased economic security.
Conclusion
Investing directly in our next generation will make us a more equitable, smarter, and dynamic city. It will show that we are committed to the next generation – that this city isn’t just a playground for recent college grads or a vertical office park for commuters but a place where families can live a full life. That’s the city that I want my kid to grow up in.
FAQs
Q: How does the baby bonds program work?
A: The program grants a seed account to every child at birth, which is placed in a trust as they grow. The account is used for education, buying a home, starting a business, or other purposes.
Q: How much does it cost to participate in the program?
A: The initial investment is just $1,000 per newborn.
Q: What is the potential impact of baby bonds on the racial wealth gap?
A: According to Morningstar research, baby bonds could potentially reduce the racial wealth gap by as much as two-thirds.
Q: Has baby bonds been implemented anywhere else?
A: Yes, Connecticut introduced a similar program last year, and nearly 8,000 babies have already qualified. Washington D.C. implemented bonds in 2021, and California has a pilot program. On the federal level, Senator Cory Booker and Representative Ayanna Presley introduced legislation for federal baby bonds in 2021 and again in 2023.
Q: What is the ROI of baby bonds?
A: Years of research across disciplines show the positive ROI of increased economic security.
