ASPIRE Act of 2005

The ASPIRE Act of 2005 proposed the creation of a "KIDS Account" for every child born in the United States after December 31, 2006. Under this plan, the federal government would provide a one-time $500 contribution to establish a savings account for the child, with additional matching funds available for children in lower-income households.

These accounts would function similarly to a Roth IRA, allowing the funds to grow tax-free until the account holder reaches adulthood. Once the account holder turns 18, the money could be used to pay for higher education, purchase a first home, or be rolled over into a retirement account. The bill also included provisions for financial literacy programs to help young account holders learn how to manage their investments.