Reinventing Savings Bonds
Savings bonds have always served multiple objectives: funding the U.S. government, democratizing national financing, and enabling families to save. Increasingly, the authors write, that last goal has been ignored. A series of efficiency measures introduced in 2003 make these bonds less attractive an...
| Asıl Yazarlar: | , |
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| Materyal Türü: | Journal article |
| Baskı/Yayın Bilgisi: |
2005
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| _version_ | 1826289847284793344 |
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| author | Tufano, P Schneider, D |
| author_facet | Tufano, P Schneider, D |
| author_sort | Tufano, P |
| collection | OXFORD |
| description | Savings bonds have always served multiple objectives: funding the U.S. government, democratizing national financing, and enabling families to save. Increasingly, the authors write, that last goal has been ignored. A series of efficiency measures introduced in 2003 make these bonds less attractive and less accessible to savers. Public policy should go in the opposite direction: U.S. savings bonds should be reinvigorated to help low- and moderate-income (LMI) families build assets. More and more, those families’ saving needs are ignored by private-sector asset managers and marketers. With a few relatively modest changes, Tufano and Schneider explain, the savings bonds program can be reinvented to help those families save, while still increasing the efficiency of the program as a debt management device. Savings bonds provide market-rate returns, with no transaction costs, and are a useful commitment savings device. The authors’ proposed changes include (a) allowing federal taxpayers to purchase bonds with tax refunds; (b) enabling LMI families to redeem their bonds before 12 months; (c) leveraging private-sector organizations to market savings bonds; and (d) contemplating a role for savings bonds in the life cycles of LMI families. |
| first_indexed | 2024-03-07T02:35:09Z |
| format | Journal article |
| id | oxford-uuid:a88775f1-8bee-4bb7-8323-5750e3879112 |
| institution | University of Oxford |
| last_indexed | 2024-03-07T02:35:09Z |
| publishDate | 2005 |
| record_format | dspace |
| spelling | oxford-uuid:a88775f1-8bee-4bb7-8323-5750e38791122022-03-27T03:02:10ZReinventing Savings BondsJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:a88775f1-8bee-4bb7-8323-5750e3879112Saïd Business School - Eureka2005Tufano, PSchneider, DSavings bonds have always served multiple objectives: funding the U.S. government, democratizing national financing, and enabling families to save. Increasingly, the authors write, that last goal has been ignored. A series of efficiency measures introduced in 2003 make these bonds less attractive and less accessible to savers. Public policy should go in the opposite direction: U.S. savings bonds should be reinvigorated to help low- and moderate-income (LMI) families build assets. More and more, those families’ saving needs are ignored by private-sector asset managers and marketers. With a few relatively modest changes, Tufano and Schneider explain, the savings bonds program can be reinvented to help those families save, while still increasing the efficiency of the program as a debt management device. Savings bonds provide market-rate returns, with no transaction costs, and are a useful commitment savings device. The authors’ proposed changes include (a) allowing federal taxpayers to purchase bonds with tax refunds; (b) enabling LMI families to redeem their bonds before 12 months; (c) leveraging private-sector organizations to market savings bonds; and (d) contemplating a role for savings bonds in the life cycles of LMI families. |
| spellingShingle | Tufano, P Schneider, D Reinventing Savings Bonds |
| title | Reinventing Savings Bonds |
| title_full | Reinventing Savings Bonds |
| title_fullStr | Reinventing Savings Bonds |
| title_full_unstemmed | Reinventing Savings Bonds |
| title_short | Reinventing Savings Bonds |
| title_sort | reinventing savings bonds |
| work_keys_str_mv | AT tufanop reinventingsavingsbonds AT schneiderd reinventingsavingsbonds |