Study commissioned by the Colorado Fiscal Institute and Soul 2 Soul Sisters and conducted by the SEED CO team finds practical paths for helping Colorado children build wealth
DENVER — Colorado can create a sustainable Baby Bonds program that gives children from families with low incomes a stronger financial foundation as they enter adulthood, according to a new feasibility study released today by the Colorado Fiscal Institute.
The Colorado Fiscal Institute and Soul 2 Soul Sisters launched the study in September 2025 to answer a straightforward question: Could Baby Bonds work in Colorado? The research shows they can.
The study was conducted by the Systems for Equity and Economic Dignity Colorado (SEED CO) team at the Colorado School of Public Health at the University of Colorado Anschutz Medical Campus. Researchers presented their findings during a virtual event Tuesday morning.
The presentation also featured Darrick Hamilton, one of the primary architects of Baby Bonds and founding director of the Institute on Race, Power and Political Economy at The New School. Hamilton discussed why Baby Bonds are needed now and how the idea has grown into a national movement, with states across the country exploring or implementing programs of their own.
Baby Bonds are publicly funded accounts established for eligible children at birth and invested until adulthood. Recipients can then use the money for approved wealth-building purposes, such as pursuing higher education, buying a home, starting a business, or saving for retirement.
A targeted Colorado program would serve children based on their families’ income or eligibility for programs such as Medicaid, regardless of race or ethnicity. The idea is simple: Children should not have to be born into wealth to have a real chance to build it.
“This research shows that Baby Bonds are not just a big idea. They are a practical and powerful tool Colorado can use to give children from families with low incomes something meaningful to build from,” said Esther Turcios, deputy director of the Colorado Fiscal Institute. “This is the first step toward developing Baby Bonds legislation and building the broader movement needed to create lasting wealth-building opportunities for Colorado families.”
The study’s key findings include:
- Both targeted and universal Baby Bonds programs would help children build wealth, with the greatest gains coming from broader eligibility and larger initial contributions.
- A universal program covering every child born in Colorado would create an estimated $1.1 billion in new wealth per birth cohort, meaning all children born in the state during a given year.
- Colorado could create a sustainable funding model by combining an initial investment with dedicated revenue and public and private contributions, reducing reliance on annual appropriations.
- An effective program should include automatic enrollment, a substantial initial contribution, financial education and coaching, culturally responsive outreach, and an emphasis on public funding rather than family contributions.
Researchers modeled a targeted program for approximately 22,000 babies born with Medicaid coverage each year and a universal program for approximately 63,000 Colorado babies annually. Under both models, an initial $3,200 investment would grow to approximately $7,334 by age 18. The targeted program would require an estimated $70 million per year, while the universal program would require approximately $201 million.
“Our findings show that Colorado has several viable paths to creating a Baby Bonds program,” said Tran T. Doan, the study’s principal investigator and an assistant professor of health systems, management and policy at the Colorado School of Public Health. “Whether the state chooses a targeted or universal model, Colorado can build a program that reaches children automatically, grows a meaningful investment over time, and does not depend on parents having extra money to contribute. The key is pairing thoughtful program design with a stable funding source.”
The study also shows how Baby Bonds could narrow gaps in who gets the opportunity to build wealth. Without intervention, median wealth among white Coloradans at age 35 is projected to be three times that among Black Coloradans and twice that among Hispanic Coloradans.
Those disparities are the result of generations of policy choices that have made it easier for some families to build and pass down wealth than others. An income-based Baby Bonds program would serve children of every race and ethnicity while helping address the unequal opportunities that continue to shape wealth in Colorado.
Baby Bonds would differ from federal Trump Accounts in both scale and design. Trump Accounts include a one-time $1,000 federal contribution for eligible children born from 2025 through 2028, but their long-term value depends more heavily on additional contributions from families, employers, and other entities. Among the policies researchers modeled, Trump Accounts produced the smallest reduction in wealth gaps. A targeted Colorado Baby Bonds program would make a larger public investment and intentionally direct support to children with the fewest opportunities to build wealth.
The findings give Colorado a starting point for developing Baby Bonds legislation and building a more coordinated approach to wealth-building policy. The study identifies the Colorado Treasurer’s Office as a potential home for these programs. The office is already home to Colorado SecureSavings, a state-facilitated retirement program, and Colorado ABLE, which helps people with disabilities save for qualified expenses.
“This is about building a coordinated approach to wealth in Colorado,” Turcios said. “The Treasurer’s Office could become a one-stop shop for programs that help Coloradans save, invest, and build long-term financial security throughout their lives.”
Read the report
A recording of the Aug. 25 presentation will be posted in the coming days.
Join the Colorado Wealth Building Coalition
Coloradans and organizations interested in helping advance Baby Bonds and other wealth-building policies are invited to join the Colorado Wealth Building Coalition. Coalition members receive ongoing updates, invitations to learning opportunities featuring guest speakers and other experts, and ways to get involved, particularly during the legislative session.
Anyone can join. To get involved, contact Esther Turcios at turcios@coloradofiscal.org.
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:
About the Colorado Fiscal Institute
The Colorado Fiscal Institute is a nonprofit, nonpartisan organization that advocates for sound tax, budget, and economic policies that promote equity and widespread economic prosperity. Learn more at coloradofiscal.org.
About Soul 2 Soul Sisters
Soul 2 Soul Sisters is a nonprofit organization that provides holistic programming for Black women, femmes, and gender-expansive beings that promotes healing, health, and joy. Soul 2 Soul Sisters is committed to racial justice, dismantling anti-Black oppression, educating people about it, and leading conversations about storytelling, economic justice, and healing justice. Learn more at soul2soulsisters.org.
About the SEED CO team
The Systems for Equity and Economic Dignity Colorado (SEED CO) team is based at the Colorado School of Public Health at the University of Colorado Anschutz Medical Campus. Its work examines policies and systems that can advance economic dignity and equity.
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