ABC News reports that Senator Hillary Clinton has introduced the idea of giving every new child born in the U.S. a $5,000 baby bond from the government. The $5,000 account could be used as a nest egg towards college tuition or home ownership.
"I like the idea of giving every baby born in America a $5,000 account that will grow over time," said Clinton, "so when that young person turns 18 if they have finished high school they will be able to access it to go to college or maybe they will be able to put that down payment on their first home, or go into business."
Clinton's Friday remarks to the Congressional Black Caucus were not the first time that she has voiced her support for the concept of using the power of compound interest to close the country's asset gap.
While speaking to the centrist Democratic Leadership Council in 2006, she discussed the idea of giving every child born in America $500.
Today was, however, the first time that she has floated the idea of giving every child born in America the larger sum of $5,000.
There is already a movement in the works - started by the New America Foundation -- to start Children's Savings Accounts, which would involve a smaller $500 sum. You can read more about the $5,000 baby bond in the Washington Post, Time and USA Today.
