Summary
Some U.S. states, like Connecticut, are creating special accounts for newborns called "baby bonds." These accounts hold money given by the government and grow tax-free until the child turns 18. A new plan by the government will provide $1,000 to every baby born in the U.S. through 2028.
Key Facts
- Baby bonds are government-funded accounts set up for newborns.
- These accounts grow without being taxed until the child turns 18.
- Connecticut is one of the states testing baby bonds.
- The U.S. government plans to give $1,000 to each baby born until 2028.
- The initiative aims to reduce wealth inequality.
- The plan is linked to a tax and spending bill signed by President Trump.
- The goal is to help families build financial resources over time.
