This new $5,000 stimulus check would give every child a head start on their savings accounts. Find out how this program benefits you and your children.
The American Dream Accounting Act is already taking shape, which has the firm purpose of helping children secure their future lives much earlier.
Children living in the United States could soon claim about $5,000 as part of a government initiative that enables them to build up early savings. This is possible thanks to the American Dream Accounts Act (ADAA) in partnership with the Social Security Administration (SSA).
The initiative, announced by Minnesota Democratic Representative in Congress, Dean Phillips, will allow young people to start an indexed savings fund that will be backed by compound interest. The amount saved will be accessible upon graduation from high school, by obtaining a GED.
Other benefits
However, the program is much more comprehensive. The ADAA also provides a 10% net return on the $5 thousand dollars initially deposited. Which means that beneficiaries could eventually have up to $25 thousand dollars at the time of collecting their benefits. Money that can be used effectively to acquire a space, pay for college tuition, or to support the start of a family business.
In the same way as in other programs, in the case of two minors included in the plan, who later begin an adult relationship, they could obtain up to $50 thousand dollars. What the promoters of the law consider a significant help for young American families at a time when the economy and social pressures generate a decline in birth rates.
“To fulfill that founding promise of our great nation, it is necessary that everyone have the opportunity to realize the American dream,” Phillips said when presenting the initiative. “This legislation gives American children the chance to unleash and develop their full potential in this great country.
Recipients will also be able to track their bank account through a mobile application and the United States Department of Education will also ensure that they receive training on financial and tax topics, such as money management, investments and promotion. of an entrepreneurial spirit.
Who can request this stimulus check?
To request this stimulus check, it is necessary that the child was born in the United States or has been naturalized (that is, children of immigrant parents, or immigrants themselves can apply for it as well). If approved, they will receive $5,000 to ensure their future lives.
As expected in these cases, the main opposition will probably come from the Republican caucus, who will oppose the high costs of the plan. Taking into account that it would benefit 46 million children between 0 and 11 years old, implementing the program would involve an expense of $230 billion by 2024. However, it is not wasted money.
«It is, however, an investment, because the plan produces dividends and it is time to bet on the American values of independence and opportunities for all. By passing the American Dream Accounts Act, we are on the right path,” he added.
In any case, the sum is not so high when compared to other disbursements such as those associated with military spending. The United States spends $820 billion dollars on this each year.
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