Universal Savings Accounts Can Help More Americans Save for Their Futures

To make saving a little easier, a new idea is gaining popularity: Universal Savings Accounts (USAs). These savings accounts would help every American save for a rainy day, to start a business or to grow their family.

The current system for personal savings is broken and in need of a new option. It tells young and lower-income Americans not to save or invest unless you are ready to save for retirement or other government-approved goals.

The existing 401(k) and 529 saving accounts are designed for Americans who are wealthy enough to save for specific purposes and financially secure enough to know that their plans won’t change. USAs provide another option, allowing families to save for the unknowns in life, without strings attached or being penalized by the tax code.

Instead of juggling multiple savings accounts, specific to retirement, education, health care or child care, a USA would be a new catch-all account that can be used for anything.

So how would these accounts work?

Read the full Op-Ed at The Fiscal Times.

CGO scholars and fellows frequently comment on a variety of topics for the popular press. The views expressed therein are those of the authors and do not necessarily reflect the views of the Center for Growth and Opportunity or the views of Utah State University.