California legislators have introduced a bipartisan bill that would give each baby born in the state a head start on savings. Each child, regardless of their parents’ financial situation and immigrant status, would receive $500 in a savings account, and the idea is that if his/her parent adds $50 to the account every month at 8% interest, that child will have earned $17,500 at the age of 18. The initial $500 would then have to be paid back when the child becomes 18. It would cost the state $285 million dollars each year.
I don’t know what I think about this proposed bill. I know many people will complain that it’s another waste of taxpayers’ money, but I’m sure $285 million dollars would be sunk into other “programs” that probably don’t or won’t work. At least, through this money, some children will grow and have a better understanding about money than they would have normally. I think it’s a noble attempt to better the lives of some Californians. I don’t, however, like the idea that the money has to be repaid. What if the child doesn’t repay? California would be ruining lives early with bad credit. I doubt this bill will pass, but it’s a nice idea. Too bad it’s useless.
Speaking of California, if you’re going to be in the Los Angeles area on Saturday, April 28 and Sunday, April 29 you won’t want to miss Baby Celebration LA. There will be everything for new moms and dads and their little ones, so you’ll definitely want to be there. Check out Seascape Productions for more information about the hundreds of companies that will be there and speaker information. It’s shaping up to be a great way to spend a weekend.