Lawmakers in the US are considering a new bill called America Saving for Personal Investment, Retirement, and Education (ASPIRE Act).  This act will provide every newborn baby in the US with a $500 savings account.  The idea of this proposed bill would be to increase personal saving by Americans.  The money could be used for education expenses, buying a home, or saving for retirement once the child turns 18 years old.

I do not know much about this new proposal so far, but at a glance, I think it is potentially a good idea.  If only I had $500 in the bank when I was born and it was put in a high yield interest account.  It would be worth quite a bit right now with all that compounding.

Still, I would like to hear more about what this bill would entail in terms of taxes, restrictions, and other details.  I wonder if you would get taxed when you take the money out of the account and if there are any specific restrictions on what you could use the money for.

What do you think of this proposal? Would giving every newborn be a good idea for our government?