When it comes to building wealth, time is a child’s greatest financial advantage. Starting early gives even small assets decades to grow, turning modest contributions into meaningful opportunities later in life.

At a moment when many American families are struggling with affordability, child savings accounts can serve as important building blocks to help low-income households prepare for the future. These tools can create life-changing pathways to economic mobility, such as attending college, becoming a homeowner, or launching a small business. And as child savings opportunities and vehicles expand, the next step for the field is to help effectively access and utilize them to build long-term financial resilience.

Twenty years of research and pilot initiatives have demonstrated what’s possible when families have consistent opportunities to save and invest early in a child’s life.

For example, research from the inaugural cohort of Kindergarten to College, a universal child savings programs in San Francisco, demonstrates that students who were part of this savings program were more likely to enroll in college.

Research from the Aspen Institute shows that starting with a $1,000 investment at birth rather than at age 7 could result in nearly $9,000 more in savings by age 18 for education-related expenses. Starting with a $1,000 investment at birth rather than age 25 could mean nearly $65,000 more by age 35—funds that could support goals such as purchasing a home or starting a business. Time is one of the most powerful drivers of wealth creation.

Early wealth-building also has ripple effects across generations, given the strong connection between the financial well-being of parents and their children. According to the Financial Health Network three-quarters of families with a child in college use parent savings to cover costs, while 6% of households carry student loan debt for a child or grandchild’s education. When families can establish consistent savings early for their children and set them up for financial stability in adulthood, this also helps parents strive toward greater financial health and break generational cycles of economic insecurity.

Over the past decades, a growing range of financial tools, account types, and municipal and federal initiatives have emerged to help families build assets for their children from an early age. Citi and the Citi Foundation were early supporters of this field, investing in research, capacity-building, and infrastructure to pilot a variety of child savings accounts and programs.

Lack of awareness of child savings options can be a barrier to participation, particularly for low-income families. If early wealth-building strategies are going to meaningfully improve financial health, the families who stand to benefit most need trusted, clear pathways into these opportunities.

Recognizing that expanding opportunity requires more than creating new savings vehicles, the Citi Foundation announced a $5 million commitment in 2026 to Prosperity Now’s ABC Initiative (Asset-Building for Children). This initiative is designed to boost awareness and adoption of existing and emerging child savings opportunities among low-income families, with a focus on the new Trump Accounts (also known as 530A accounts).

Through direct outreach, educational resources, and grant support for IRS-sponsored Volunteer Income Tax Assistance (VITA) providers, the ABC Initiative aims to help families better understand their options for child savings strategies. VITA providers are trusted sources of support for millions of low-income households at tax time and are uniquely positioned to connect families with wealth-building opportunities for the next generation, as opening the new federal 530A child savings account can be integrated into the tax-filing process.

Ultimately, financial resilience for most families begins with two key wealth-building advantages: time and awareness. By investing in innovative solutions that help low-income families start saving early and have the knowledge to do so, Citi and the Citi Foundation are working to expand economic mobility for those who need it most.