Stae run Children's Trust Fund

[notfullofit]

May 13, 2008 22:00 | Updated May 13, 2008 22:08
Herzog proposes 'children's trust fund'
By RUTH EGLASH

A proposal to provide every child born in Israel with a trust fund will be presented to cabinet ministers in the coming weeks by Minister of Welfare and Social Services Isaac Herzog, it was announced on Tuesday.

Based on similar state-run trust funds recently initiated in Britain and the US, Herzog's proposal, which is backed by the National Insurance Institute, would mean that every baby born here would get a savings account, with any additions to the standard child allowances deposited into it. Children from low-income families would also receive a financial bonus at birth.

"It's a simple idea," said Herzog, who has been working with professionals from his office and the NII over the past few months to devise the plan. "It will build capital for every child from the day they are born and the funds will help them get started in their adult lives."

Herzog said the long-term goal of the plan was to help families living below the poverty line to break the cycle.

"Instead of financing an immediate solution that will not last for future generations, I believe that if we move in this direction, we will be able to reduce existing socioeconomic gaps in society and, with time, even eradicate them," he said.

The plan is expected to be presented at the next meeting of the Ministerial Committee for Child Allowances, which is headed by Minister of Labor, Trade and Industry Eli Yishai.

"This process will constitute a new horizon for the children of Israel," said National Insurance Institute director-general Esther Dominissini. "It will assist low income families in breaking out of the cycle of poverty, which is passed down from generation to generation."
http://www.jpost.com/servlet/Satellite?cid=1210668628236&pagename=JPost%2FJPArticle%2FShowFull

Sounds like a great idea to me.

[fed-up]

1. and how much does the US give in AId to Israel a year? SIX Billion? no hungry kids here? nt

[angstlessk]

2. the US has a state run trust fund for children??? that's a new one on me!!

[notfullofit]

3. Not a bad idea though

if it is well thought through.