Key Takeaways
- Economic inequality in Massachusetts is among the highest in the nation. This inequality is particularly stark between racial groups.
- Baby bonds are an asset-building policy tool that allows children born into families with fewer resources the opportunity to build and grow wealth.
- Baby bonds initiatives are being implemented across the United States and these programs offer useful insights for future implementation in Massachusetts.
- Multiple bills filed in the Massachusetts state legislature would create baby bonds programs aimed at reducing our racial wealth gap and improving economic opportunity for children and adults alike.
- An individual baby bond could yield between $10,897 and $25,427 after 18 years, depending on initial investment.
- A baby bonds program covering infants in foster care and infants whose family receives Transitional Aid to Families with Dependent Children (TAFDC) could cost between $35 million and $81 million annually, depending on initial investment.
