North Dakota Wants to Give Every Newborn a Small Nest Egg of $5000 for a Fair Start to Life
If you were to look into your bank account right now, could you use an extra $5,000? Many could, but not everyone is eligible to get the free funds, especially if you don't live in North Dakota and are already born.
Starting soon, the state of North Dakota could be giving every baby born in the Peace Garden State a $5,000 nest egg to be used when they turn 18-years old. North Dakota's Senate Bill 2165 would require the state-owned Bank of North Dakota to manage the nest egg for children born after January 1, 2017. When the child turns 18, they could use the money to help pay for school at a state college, purchase a business, home or farm loan.
Senator Oley Larsen, one of the bill's sponsors, believes this bill is just common sense and helps to give everyone a fair start in life.
The bill is being taken seriously by the Senate, after passing with an amendment to do further studies on the feasibility of the idea before putting it into motion. The House will debate the bill later.
Based on a 7 percent return, Larsen also says that the $5,000 nest egg could grow to closer to $20,000 by the time the child turns 18. The funds would then be transferred into another bank for purchase of a home or business or be directed to the state college of choice. The funds would never go directly into the resident's pockets.
Any unused funds would go into the state of North Dakota's general fund.