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Securing Georgia's Future: How Baby Bonds Can Build Wealth and Transform Communities

References

  1. Median net worth estimates were derived from Esri’s 2023/2028 Updated Demographics dataset. See Esri, Methodology Statement: 2023/2028 Esri Updated Demographics (Redlands, CA: Esri, June 2023), https://www.esri.com/data/esri_data.
  2. Chetty, Raj, Nathaniel Hendren, Patrick Kline, and Emmanuel Saez. Where is the Land of Opportunity? The Geography of Intergenerational Mobility in the United States. Quarterly Journal of Economics 129, no. 4 (2014): 1553-1623. https://doi.org/10.1093/qje/qju022.
  3. Ibid.
  4. This report builds on findings from the Georgia Budget & Policy Institute, Baby Bonds in Georgia: Creating a Universal Savings and Investment Account Program for Children, which also outlines a universal savings program under House Bill 284. Both analyses find that such a policy could yield over $16,000 in wealth for eligible young adults by age 18, while helping close longstanding racial and regional gaps in economic opportunity.
  5. Kindred Futures analysis of a universal-progressive model.
  6. Ibid.
  7. Georgia General Assembly. 2025. House Bill 284, Georgia Baby Bond Savings Plan.
    https://www.legis.ga.gov/bills/hb284.
  8. Georgia General Assembly. 2025. House Resolution 99. Accessed March 9, 2025. https://www.legis.ga.gov/legislation/69674.
  9. Shapiro, Thomas M., and Edward N. Wolff, eds. Assets for the poor: The benefits of spreading asset ownership. Russell Sage Foundation, 2001.
  10. Kindred Futures analysis of Survey of Income and Program Participation (SIPP), 2023.
  11. Himmelstein, Kathryn E. W., Jourdyn A. Lawrence, Jaquelyn L. Jahn, Joniqua N. Ceasar, Michelle Morse, Mary T. Bassett, Bram Wispelwey et al., 2022. “Association between racial wealth inequities and racial disparities in longevity among us adults and role of reparations payments, 1992 to 2018”, Jama Network Open (11), 5:e2240519.
    https://doi.org/10.1001/jamanetworkopen.2022.40519.
  12. Kindred Futures analysis of Survey of Income and Program Participation (SIPP), 2025.
  13. Kindred Futures analysis of American Community Survey, 2023.
  14. 2024 kids count data book. (n.d.). The Annie E. Casey Foundation. Retrieved March 9, 2025, from
    https://www.aecf.org/resources/2024-kids-count-data-book.
  15. Darity, William, 2008. “Forty acres and a mule in the 21st century*”, Social Science Quarterly (3), 89:656-664.
    https://doi.org/10.1111/j.1540-6237.2008.00555.x.
  16. Kindred Futures analysis of Survey of Income and Program Participation (SIPP), 2023.
  17. Kindred Futures analysis of county-level net worth estimates provided by Esri, 2024.
  18. Derenoncourt, Ellora, Chi Hyun Kim, Moritz Kuhn, and Moritz Schularick. “The racial wealth gap, 1860-2020.” Manuscript, Princeton University and University of Bonn (2021).
  19. Cassidy, Christa, Rachel Heydemann, Anne Price, Nathaniel Unah, and William Darity Jr. “Baby bonds: A universal path to ensure the next generation has the capital to thrive.” Available from Samuel Dubois Cook Center on Social Equity at Duke University and the Insight Center for Community Economic Development website at https://insightcced. org/wp- content/uploads/2019/12/ICCED-Duke_BabyBonds_December2019-Linked. pdf (2019).
  20. Georgia General Assembly. 2025. House Resolution 99. Accessed March 9, 2025.
    https://www.legis.ga.gov/legislation/69674.
  21. U.S. Census Bureau, Survey of Income and Program Participation, Survey Year 2023, Public Use Data, Project No. P- 7516454, Dataset D-0000004561, Approval CBDRB-FY24-0222.
  22. Ibid.
  23. Darity, William, 2008. “Forty acres and a mule in the 21st century*”, Social Science Quarterly (3), 89:656-664. https://doi.org/10.1111/j.1540-6237.2008.00555.x; Collins, William and Robert A. Margo, 2011. “Race and home ownership from the end of the civil war to the present”, American Economic Review (3), 101:355-359.
    https://doi.org/10.1257/aer.101.3.355.
  24. Vekemans, Marie-Cécile, Gianna Short, Charles B. Dodson, and Bruce L. Ahrendsen. “Loan survival: Are Black farmers more likely to default?.” Applied Economic Perspectives and Policy 46, no. 1 (2024): 137-153.
  25. Signe-Mary McKernan and others, “Private Transfers, Race, and Wealth” (Washington: Urban Institute, 2011), available at https://www.urban.org/sites/default/files/alfresco/publication-pdfs/412371-Private-Transfers-Race-and-.
  26. Kindred Futures analysis of county-level net worth estimates, Esri, 2024.
  27. Ibid.
  28. Sherman, Jennifer. Dividing paradise: Rural inequality and the diminishing American dream. Univ of California Press, 2021.
  29. U.S. Census Bureau, Survey of Income and Program Participation, Survey Year 2023, Public Use Data, Project No. P- 7516454, Dataset D-0000004561, Approval CBDRB-FY24-0222.
  30. Ibid.
  31. Jones, John Bailey, and Urvi Neelakantan. “Portfolios Across the US Wealth Distribution.” Richmond Fed Economic Brief 23, no. 39 (2023).
  32. Kindred Futures analysis of data from the Opportunity Atlas, county-level estimates of average income among the 1992 birth cohort.
  33. Chetty, Raj, Will S. Dobbie, Benjamin Goldman, Sonya Porter, and Crystal Yang. Changing opportunity: Sociological mechanisms underlying growing class gaps and shrinking race gaps in economic mobility. No. w32697. National Bureau of Economic Research, 2024.
  34. Fry, R. (2014, May 14). Young adults, student debt and economic well-being. Pew Research Center. https://www.pewresearch.org/social-trends/2014/05/14/young-adults-student-debt-and-economic-well-being/.
  35. Kindred Futures analysis of data provided by the Georgia Department of Public Health, 2024.
  36. Medicaid coverage by race/ethnicity: Georgia, 2021-2023 average. (n.d.). March of Dimes | PeriStats. Retrieved March 9, 2025, from
    https://www.marchofdimes.org/peristats/data?reg=99&top=11&stop=653&lev=1&slev=4&obj=1&sreg=13.
  37. Cramer, Reid, and David Newville. Children’s Savings Accounts: The Case for Creating a Lifelong Savings Platform at Birth as a Foundation for a “Save-and-Invest” Economy (Washington, DC: New America Foundation, 2009).
  38. Kindred Futures analysis of a universal-progressive model.
  39. Ibid.
  40. Raising capital for startups: 8 statistics that will surprise you – fundera ledger. (n.d.). Retrieved March 9, 2025, from https://www.fundera.com/resources/startup-funding-statistics.
  41. Zewde, Naomi. 2020. “Universal Baby Bonds Reduce Black-White Wealth Inequality, Progressively Raise Net Worth of All Young Adults.” Review of Black Political Economy 47 (1): 3-19.
    https://doi.org/10.1177/0034644619885321.
  42. Jones-Layman, Amanda. “Educationalizing Assets: Framing Children’s Savings Accounts as an Educational Solution.” PhD diss., University of Pennsylvania, 2021.
  43. Save for college. (2024, September 9). Office of Financial Empowerment.
    http://sfgov.org/ofe/save-college.
  44. Huang, Jin, Michael Sherraden, and Jason Q. Purnell. “Impacts of Child Development Accounts on maternal depressive symptoms: Evidence from a randomized statewide policy experiment.” Social Science & Medicine 112 (2014): 30-38.
  45. Connecticut baby bonds. (n.d.). CT.Gov – Connecticut’s Official State Website. Retrieved March 9, 2025, from
    https://portal.ct.gov/ott/debt-management/ct-baby-bonds.
  46. Cosic, Damir, Madeline Brown, Amalie Zinn, Sonia Torres Rodríguez, and Ofronama Biu. Modeling the Impact of a Federal Baby Bonds Program: Impacts on Financial Wealth, College Attainment, Student Debt, Home Equity, and Retirement Savings. Urban Institute, 2024.
  47. Georgia General Assembly. House Bill 284, Georgia Baby Bond Savings Plan. 2025.
    https://www.legis.ga.gov/bills/hb284.
  48. To calculate the total wealth increase for one birth cohort under HB 284, we first estimate the annual state investment per child (initial deposit + recurring contributions) and project its growth using a 5% annual return. We categorize recipients into two groups: standard recipients receiving $250 at birth and annually, and low-income recipients receiving $1,000 at birth and $500 annually. Using Georgia’s estimated 125,951 births per year (with 55% qualifying for the higher-tier contributions), we apply compound interest formulas to project individual account balances at age 18 ($7,000 for standard recipients, roughly $15,000 for low-income recipients). Multiplying by the number of children in each category gives the total projected wealth for the cohort, which amounts to $1.44 billion in accumulated assets by adulthood.
  49. How does a 529 plan work in Georgia? (n.d.). Retrieved March 9, 2025, from
    https://www.path2college529.com/learn/how-does-a-529-plan-work/.

Read More Of The Report

Securing Georgia’s Future: Executive Summary and Introduction

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Current State of Wealth for Georgians

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Georgia’s Urban-rural Wealth Divide

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Current Wealth-Building Realities for Georgia’s Youth and Young Adults

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Why Baby Bonds?

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Georgia is poised to be a leader in state-level Baby Bonds policy

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Securing Georgia’s Future: Implementation Steps and Conclusion

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