New research from the Colorado Fiscal Institute and the SEED CO team finds a practical path to helping children from families with low incomes build wealth.

What would it take to make Baby Bonds work in Colorado?

The Colorado Fiscal Institute and Soul 2 Soul Sisters commissioned the Systems for Equity and Economic Dignity Colorado, or SEED CO, team at the Colorado School of Public Health to explore that question. Their new feasibility study finds that Colorado can create a sustainable, publicly funded Baby Bonds program that gives children from families with low incomes a meaningful financial foundation as they enter adulthood, regardless of their race or ethnicity.

Baby Bonds are publicly funded accounts established for children early in life and designed to grow over time. They can help more young adults afford the building blocks of economic security, like education, a home, or starting a business. By reaching children who have the least inherited wealth, Baby Bonds also have the power to reduce long-standing racial wealth gaps in Colorado.

Read the research

The study examines practical questions Colorado policymakers and communities will need to answer, including program costs, funding options, administration, eligibility, and key design features. It finds that Colorado has more than one workable path forward, including options that do not rely on a new sin tax.

Key findings

• Without intervention, by age 35, White Coloradans are projected to hold three times the median wealth of Black Coloradans and twice the median wealth of Hispanic Coloradans.
• A targeted program for children covered by Medicaid could cost about $70 million per annual birth cohort, meaning children born in Colorado in a single year.
• A universal program could create an estimated $1.1 billion in new wealth for a single annual birth cohort.
• Strong program design, including automatic enrollment, meaningful public contributions, and clear outreach, can help ensure Baby Bonds reach the children they are meant to serve.

Help build what comes next

Baby Bonds are one piece of a broader vision for wealth building in Colorado. Read and share the report, start a conversation with your elected officials, or request a briefing for your organization.

Join the Colorado Wealth Building Coalition

To join, contact Esther Turcios at esther@coloradofiscal.org. Coalition members receive updates on Baby Bonds and other wealth-building work, ways to get involved during the legislative session, and learning opportunities with guest speakers and partners.

Watch the presentation

“[Let’s] democratize access to assests.” – Dr. Darrick Hamilton

Learn more about Baby Bonds

The Colorado Fiscal Institute partnered with Empower Media Exchange to produce a series exploring Baby Bonds and what they could mean for Colorado families:

• Read “Baby Bonds in Colorado” from Colorado Focus.
• Explore the Baby Bonds Community Connections feature from Empower Media Exchange.
• Watch Esther Turcios discuss how Baby Bonds could work in Colorado.