The Importance of a Universal Savings Account

For many Americans, especially lower income folks with kids, just how a child qualifies for you for tax benefits is incredibly complicated. If politicians want to subsidize children who the tax code, I'd rather they didn't, but if they're going to, we should at least have sort of one definition of child and one definition of dependentrather than six. One credit has one set of definitions. The bigger issue here is the rules that the federal government draws around you only being able to save for retirement. That's why I think we also need to add something called what we call universal savings account. This is, would you be just like your retirement savings account, but you can save for things