Every American deserves the chance to retire with dignity and security. But for too many families— especially in rural and working-class communities—that dream feels out of reach. Wages aren’t keeping up, pensions are disappearing, and many Americans lack access to the tools needed to build lasting financial security.
That’s why I’m championing a straightforward, conservative idea: Children’s Savings Accounts — investment accounts seeded at birth that grow over time and give every child a financial foundation for the future.
Here’s how it would work: At birth, each child would receive a $1,000 investment into a privately managed account—not a government-run program—invested in low-cost, reliable index funds like the S&P 500. The funds would grow tax-free and could only be accessed at retirement, unless used earlier for key milestones like purchasing a first home or paying for college.
Erin Houchin works on spelling with her son, Graham, 7, after dinner in their home in Salem, Indiana, on April 6, 2016. (Al Drago/CQ Roll Call via Getty)
Even modest early investments can yield dramatic long-term returns. A one-time $1,000 contribution at birth, invested in a low-cost index fund, would grow to about $44,000 with a six percent return—or as much as $1.58 million with a 12 percent return by retirement. Contributing $1,000 annually for just the first seven years of a child’s life yields even more powerful results: up to $261,000 at a six percent return, or more than $8 million at 12 percent. These figures illustrate the power of compound interest and the generational impact of early, sustained investment.
And if families choose to contribute additional dollars, or if private-sector match programs are introduced, the potential multiplies even further.
This isn’t about creating a new entitlement or expanding government. It’s about applying commonsense investment strategies to help Americans build wealth over a lifetime. We’ve begun exploring fiscally responsible ways to pay for it—ranging from targeted tax credits to reallocating existing federal spending—to ensure the model is both affordable and scalable.
Republican Congressional candidate Erin Houchin speaks with members of the National Active and Retired Federal Employees Association in Greenwood, Indiana, on April 6, 2016. (Al Drago/CQ Roll Call via Getty)
In Southern Indiana, we are raised to work hard, live within our means, and invest in the future. This idea reflects those values. It promotes responsibility and long-term planning—while giving every child, a chance to participate in the American economy from day one.
I’ll soon be introducing legislation to make this vision a reality. With support from both conservatives focused on financial independence and innovators looking to expand opportunity, we can build a bipartisan path forward.
Let’s give every child a stake in our country’s future, and every family a reason to believe in the American Dream again.
Congresswoman Erin Houchin represents Indiana’s 9th district and serves on the House Rules, Budget, and Energy & Commerce Committees.
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