How Effective Would Baby Bonds Be as Monthly Payments?
It depends on how the money is used.
Would a lump sum of cash all at once or regular monthly installments over time work better for mitigating inequality? Morningstar dives in to weigh the pros and cons of each when applied to baby bonds.
Sen. Cory Booker and Rep. Ayanna Pressley recently reintroduced a bill called the American Opportunity Accounts Act. Co-sponsored by 15 senators, including Senate Majority Leader Chuck Schumer, the bill would create a seed savings account of $1,000 for every child at birth, with additional deposits of up to $2,000 each year, depending on household income.