As asset funders, we know that wealth building takes time, and it needs to start early.
That’s why we continue to pay close attention to proposals—and confusion—about child-focused savings and asset creation tools. While often discussed interchangeably, today’s child-focused accounts differ significantly in their goals, funding, eligibility criteria, and usage.
From 529 Plans to Baby Bonds to 530A (Trump) accounts, these instruments vary in structure, goals, and equity outcomes. For funders focused on education, health, economic security, economic justice, and/or asset building, understanding these differences is essential. It helps clarify where to engage, invest, and advocate for targeted, effective, equitable instruments that advance economic mobility for low- to moderate-income households.
DOWNLOAD CHILD-FOCUSED SAVINGS INSTRUMENTS: WHAT FUNDERS NEED TO KNOW
AFN’s perspective was recently featured in The Chronicle of Philanthropy in an article exploring the emergence of 530A (Trump) accounts and philanthropy’s role in shaping their impact.
🔗 Read the article on The Chronicle’s site (subscription required)
Additional AFN Resources
Baby Bonds
- Cradle to Capital: How Philanthropy Can Invest in Baby Bonds (forthcoming September 2025)
- Innovations in Baby Bonds: Why Pairing Guaranteed Income and Baby Bonds Is More Than the Sum of Its Parts
- Making Baby Bonds Work: How Philanthropy Can Support Public Implementation
- Baby Bond Series by The New School’s Institute on Race, Power, and Political Economy
Children’s Savings Accounts
- Children’s Savings Accounts: A Primer
- Children’s Savings Accounts: A Core Part of the Equity Agenda
- Unleashing the Power of Children’s Savings Accounts (CSAs): Doorway to Multiple Streams of Assets by William Elliott, University of Michigan School of Social Work, Center on Assets, Education, and Inclusion (2023)
