What are CSAs?

Children's Savings Accounts in Illinois Should Have the Following Components:

Universal: Accounts would be established at birth for every child in Illinois.

Platform: The 529 College Savings Plan Platform  would provide a secure, tax-advantaged way to help pay for post-secondary education.

Account Ownership: Each CSA should be owned and operated by a third-party or public entity with the child as the beneficiary.

Initial Deposit: Every CSA should be seeded with an initial public deposit that varies depending on family income. This will provide a savings infrastructure, promote future savings, and create positive aspirations.

Progressive Structure: Voluntary additional contributions from any public or private source (e.g., family, friends, relatives, community organizations and parents’ employers) should be incented by a public match that increases in value for lower- income families.

Investment Strategy: A balanced, aged-based investment strategy should be employed.

Asset Building: Savings should be restricted until at least age 18 and should be used only for higher education/training.