A Los Angeles City Council committee advanced a motion Friday broadening features offered by a savings account program for children.
In a unanimous vote, the Civil Rights, Immigration, Social Services and Neighborhood Committee recommended support of a motion introduced by Councilwoman Monica Rodriguez. It heads to the full City Council for consideration.
Through a partnership with Los Angeles Unified School District, Opportunity L.A. provides first-grade students with a savings account to help families build assets for their future.
The motion is asking for a report on the feasibility of expanding Opportunity L.A. to include an “investment-based youth asset-building component that allows families to contribute funds that can grow over time and be used for post-secondary education, career or vocational training, or the purchase of a first home.”
Relevant departments and officials would be tasked with identifying appropriate account structures, including 529 plans, custodial investment accounts, saving accounts or other legal permissible investment vehicles.
Last, the motion would instruct the Community Investment Department to report on comparable children savings programs and best practices in other jurisdictions, opportunities to provide matching fund or incentives tied to milestones such as attendance, academic achievement, graduation, financial literacy and community service, among other factors.
“As the costs of higher education and homeownership continue to rise, the city should explore opportunities to build upon Opportunity L.A. and provide families with additional tools to build long-term wealth for their children,” Rodriguez’s motion reads. “An investment-based model could provide parents and guardians with the ability to contribute fund that grow over time while providing greater flexibility for those funds to support major milestones.”