A new bipartisan bill is bouncing around the Wisconsin state legislature that would start up savings accounts for every newborn baby. How the heck would that work?
Here’s Five Fast Facts about the WisKids Program:
- 👶 Oh Baby! - The bill would create the WisKids Program that starts a $25 savings account for every child born or adopted in Wisconsin.
- 👼 Money Back - The goal is twofold: kickstart savings and then leverage the compound interest that grows from that $25 from the state in order to help with education and/or retirement.
- 🏫 Future Pays - Wiskids expands on an existing program known as 529 college savings plans. They allow parents to invest money to help pay for future college expenses.
- 💰More More More - Around 400,000 of those 529s already exist with about $6.6B in assets. While that may seem impressive, officials say there still aren’t enough participants.
- 🎒 No Damage - Supporters say the bill will not have a fiscal impact, since it’s using $22M in fees accumulated from the Edvest College Savings program. That money will cover the $25 investment for around 60,000 kids each year.
🔥Bottom line: Your newborn gets money that they can use for their future education or retirement? And it’s being backed by both parties? It almost sounds too good to be true! Whether or not this is approved is another issue entirely, but it sounds like it’s off to a good start.
What do you think of this program?
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