Connecticut makes case for national 'baby bond' investments [View all]

[TexasTowelie]

Connecticut’s treasurer made the pitch with federal officials Thursday for a nationwide “baby bonds” program. The state passed its own version of this investment idea earlier this year, but the proposal has yet to get widespread federal legislative traction.

Here’s how baby bonds work in Connecticut.

For each child born into poverty and covered by HUSKY — the state’s Medicaid program — Connecticut’s baby bonds program allocates $3,200 to a trust.

When the child is between the ages of 18 and 30, they must complete a financial education program. After that, they can access the money. Funds can be put toward qualified expenses like education, a home, or investments in retirement or a business in Connecticut.

State officials estimate the initial $3,200 investment could grow to about $11,000 between a child’s birth and adulthood.

Read more: https://ctmirror.org/2021/10/05/ct-makes-case-for-national-baby-bond-investments/