For U.S. families the reality of income inequality is inescapable. The wealthiest one percent of households now hold over 90 percent of available wealth. For parents concerned about their children’s financial future, the odds may seem stacked against them. Fortunately, technology innovation is creating opportunity and opening doors to financial wellbeing.
The reality is that technology has emerged as in incredible tool, opening the door to easier ways to save, invest and leverage income for families at all ends of the financial spectrum.
Indeed, a slew of social-impact entrepreneurs have created platforms designed to take away one of the biggest pain points of savings by making financial wellness actions frictionless, with options like rounding up change to go into a savings fund when you make a purchase and small recurring automatic transfers. For families on a budget, the power of starting early and saving regularly, even in small amounts, can reap enormous benefits later in life.
In the same vein as these and other digital disruptors, our startup, NestEgg, launching shortly. NestEgg is an app designed to democratize access to protected, high-yield child trust funds, a key financial well-being tool that will now be available to young families, not just the very wealthy.
NestEgg allows any family member or other loved ones to quickly and easily create a flexible trust fund for as little as $3.95 a month and begin saving and investing toward a child’s future wellbeing. This approach completely opens the world of trust funds for every day, hardworking families.
Traditionally, creating a trust fund meant working with a banker or attorney to create the trust, often with a standard $250,000 entry point. NestEgg takes away that hurdles and allows parents, grandparents, other family members and loved ones to give the children in their lives the significant advantage of a fund for college, business startup, travel, home ownership, or other life choices when they are grown. Trust funds are uniquely protected from creditors, legal action, the government, and other family members, making them the most secure and stable choice for long-term child savings.
NestEgg and other technology startups may be important mainstays for family financial wellness as society and the regulatory landscape struggle to adjust to a world in which the financial scales have been largely tipped in favor of those who are already wealthy. With technology leading the way, the scales may just even up a bit, delivering a brighter future for all.