For some, having a savings account with enough to buy new tires if your car needs them, living a comfortable retirement or the opportunity to pass on investment to the next generation is their savings goal. But many low- and moderate-income workers don’t have access to savings products. Cities across the country are taking note and developing programs or leveraging federal or state programs to help more residents understand that savings can be a possibility for them and their families. By increasing the number of people who have access to opportunity and building financial knowledge, cities can support the financial stability of their residents.
Children’s Savings Accounts
Local leaders have long recognized that supporting youth and their development is key to the success of their communities. One way local leaders are supporting youth is by creating Children’s Savings Account programs.
These programs help youth, their families and the community at large come together to support young residents’ future trajectory, whether it’s their education after high school or buying a home. These are dedicated savings accounts in which young people receive an initial deposit, usually from municipal government, and the community supports the account’s growth through the youth’s completion of incentives (PDF). While these accounts are not able to pay all of a youth’s higher education expenses, they can give young people hope and the knowledge that they can continue their education beyond high school and that they are supported in the process. Early research is showing very positive results.
For example, the City of Rochester, N.Y., with support from a local foundation and financial institution, launched its own CSA program. The R Future Fund is designed to help children begin building their educational, career and financial goals. Starting with the kindergarteners, each student will receive a $20 seed deposit and can receive additional monetary incentives into their accounts for their families attending financial literacy events or obtaining a library card.
“When we invest in our children, we invest in the long-term strength and resilience of our city,” said Mayor Malik Evans. “By helping families begin saving early and connecting them with financial resources, we are building momentum for future generations and helping more young people reach their full potential.”
530A Accounts
530A accounts were created through the passage of the One Big Beautiful Bill Act. These accounts are structured as retirement accounts that start at birth and allow the child, when they turn 18, to use the funds to buy a home, pay for education after high school or start a business. Additionally, this bill created a pilot program that provides a one-time $1,000 seed deposit for U.S. citizens born between Jan. 1, 2025 and Dec. 31, 2028. Philanthropic organizations and large employers from across the country are also contributing to these accounts.
The City of Durham, N.C. (PDF) has launched the Invest America Durham initiative. The initiative aims to ensure that every child aged one and younger starts life with a 530A Account. The city aims to raise $9 million in private donations to provide each of its children with additional dollars into their accounts.
Sign up for NLC’s webinar on 530A Accounts to learn more about these accounts and the work Durham is doing to meet their goal.
Individual Retirement Accounts (IRAs)
Having retirement savings allows individuals to age with dignity, but the median amount for American families in 2022 was only $87,000. For many, this amount is not enough to live a comfortable retirement. Individual Retirement Accounts, or IRAs, are a tax-advantaged investment account used to save for retirement independent of an employer’s support.
With voter approval, the City of Philadelphia established the Philadelphia Retirement Savings Program, known as Philly Saves. This will be the third city auto-IRA program, but Philadelphia will be the first to implement in 2027 (Seattle and New York City approved programs but did not implement them after their states joined 15 other states that have launched programs). The program offers a solution for the hundreds of thousands of workers in the city who lack access to a retirement account, pushing them to save at a rate that prevents sticker shock and establishing a default percentage that supports savings.
The program also requires participation from businesses or nonprofit employers who do not offer retirement account options. As a result, PhillySaves provides a way for these employers to offer an additional benefit to their workforce without added cost or administrative burden. The program is thoughtfully designed with provisions that support small businesses, such as exempting businesses that have been open for less than two years and don’t offer a retirement plan from joining the program. For workers, the program will automatically contribute between 3 percent and 6 percent of their wages into a traditional or Roth IRA, and if they no longer wish to contribute, they can opt out.
Regardless of the alphabet-soup terms the tax code uses for these wealth-building programs, they all share one goal: giving more people the opportunity to save for the future. Cities have a critical opportunity to continue to fill the gap and take action to create brighter possibilities for residents.
Live Learning Opportunity for Children’s Savings Accounts
Spend just 30 minutes of your day joining a quick conversation on children’s savings accounts happening at 2 p.m., Thurs., Aug. 20, 2026, to learn more about how a small investment from your city, town or village can build an economically stronger future for all.
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