"חיסכון לכל ילד"? על מצבם של ילדים וצעירים חסרי עורף משפחתי

In 2017, the Israeli Government started implementing the “Savings for Every Child” program which is instituted by Israel’s National Insurance law. Under the program, the state invests 50 NIS each month in a designated savings plan on behalf of each child whose parents are entitled to a child support stipend from the government. In addition, parents have an option to “match” the state’s investment, by contributing another 50 NIS a month out of the child support stipends they receive. This position paper raises several concerns with respect to the implications of the program on children who lack familial support due to situations that include failure to care for them by their parents, life outside of the home, as well as foster care placements. The paper acknowledges that the number of children who lack familial supports is hard to estimate but notes that in 2019 alone,405,923 children were known by Child Welfare authorities, and that 12,439children were residing in out of home placements.The article identifies two deficiencies in the “Savings for Every Child” policy with respect to children without familial support: 1) their parents are not likely to make matching contribution in their designated saving plans,resulting in significant differences in the funds that will be available tothem as adults vis a vis children whose parents did make the matching contributions; and 2) the current law does not allow 18 year-olds to withdraw the monies without parental consent – greatly undermining those without familial supports who are in dire need of these funds and are unlikely to receive parental consent. The position paper argues that these aspects of the policy are inconsistent with its goals to promote equality and to close gaps among children – as they put children without familial supports in a great disadvantage. The paper makes four policy recommendations to address these issues: 1) develop mechanisms to identify children without familial support; 2) have the state make matching contribution on their behalf in lieu of their parents; 3) cancel the policy that requires parental approval for withdrawal of the monies at age 18; and 4)develop programs that will educate at-risk children about financial planning.