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Children’s Savings
Accounts
States & Asset Building
November 11, 2003
Dr. Caroline E.W. Glackin
Co-Chair, Governor’s Task Force for
Financial Independence (DE)
[email protected]
302-857-6943
Topics
• State Asset Building Policy –
Delaware Governor’s Task Force
for Financial Independence
• Children’s Savings Accounts –
SEED Collaborative
State Asset Policy
• Delaware Governor’s Task Force for
Financial Independence
• First statewide task force to address the
broad topic of asset building
• Co-chaired by State Treasurer Jack Markell &
Caroline Glackin of the First State Community
Loan Fund & Center for Community Research
& Service at the University of Delaware
• Deliberate mix of public, private & nonprofit
leaders
• Assisted by the Corporation for Enterprise
Development with Citigroup financial support
Delaware Task Force for
Financial Independence
• Categories of Exploration
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Asset Facilitation
Asset Incentives
Asset Protection
Removal of Barriers to Asset
Accumulation
Recommendations
• Given fiscal constraints, all were
either low or no cost to the State of
Delaware
• Support for the exploration of
children’s savings accounts through
a demonstration program was one
recommendation
Children’s Savings
Accounts in Delaware
• Interest generated during Governor’s
Task Force work
• Collaborative a subset of Task Force
• Application for Savings for
Education, Entrepreneurship &
Downpayment (SEED) Policy &
Practice Initiative by Delaware
collaborative through FSCLF
• Final application by the Boys and
Girls Clubs of Delaware
SEED
Boys & Girls Clubs of DE
• Only statewide Boys & Girls
Club in the United States
• Serves 1 out of 7 school-aged
youth in Delaware
• 15 club facilities, 9 school sites,
& 5 extension programs
• Administering club has 1,500
members
SEED
Target Population
• 75 children & their families
• Youth participants in the BGCD after
school programs
• Middle school children (11-13 years
old)
• African American, Latino &
Caucasian
• Most households are low-income &
low-wealth
SEED
Unique Aspects
• Only SEED site with middle school students as
target population
• Trust accounts held at Smith Barney
• Accounts held until age 18 (limited exceptions)
• Ages 18 – 21: use restricted to homeownership,
small business, automobile, education, job skills
• Age 21+: age of majority, remaining funds are
unrestricted
• Statewide collaborative developed this from Task
Force & recruited the lead agency
SEED
Key Partners
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Boys & Girls Clubs of Delaware (BGCD)
Citicorp Trust Bank, fsb & Smith Barney
Office of the State Treasurer
Delaware Financial Literacy Institute
First State Community Loan Fund
Nehemiah Gateway Community
Development Corporation
• Center for Economic Education &
Entrepreneurship – University of Delaware
• Center for Entrepreneurship – Delaware
State University
SEED
Account Structure
• Investment account (co-owned
as trust account)
• $375 initial deposit - after 10
week child training
• $1,000 in savings matches
($250/year for 4 years)
• $625 in benchmark incentives,
including parent incentives
SEED
Timeline I
• BGCD orientation – September 2003
• Information sessions/recruitment –
beginning in September
• Enrollment – October – January
• Financial fitness classes for kids –
December/January
• Financial fitness classes for parents
& IDA options – January 2004
SEED
Timeline II
• Open accounts – February – June
2004
• Add funds for incentives – February
2004 through May 2008
• Maintain monthly contact – through
June 2005
• Maintain quarterly contact – through
May 2008
• Matched withdrawals – after age 18
SEED
Current Status
• 31 children pre-enrolled with signed
parent agreements
• Funding from CFED & Citigroup
Foundation with other funding in
final rounds
• Accounts to be opened in December
• Children enrolling from low-income
areas served by 2 BGCD clubs
Delaware SEED
Contact Information
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Boys & Girls Clubs of Delaware
669 South Union Street
Wilmington, DE 19805
Phone: 302.658.1870
Fax: 302.658.3907
Website: www.bgclubs.org