Inclusive Child Development Accounts by Jin Huang Li Zou Michael Sherraden

Author:Jin Huang, Li Zou, Michael Sherraden [Jin Huang, Li Zou, Michael Sherraden]
Language: eng
Format: epub
Tags: Nonfiction, Health & Well Being, Medical, Patient Care, Health Care Delivery, Social & Cultural Studies, Social Science, Social Work
ISBN: 9781000048254
Publisher: Taylor and Francis
Published: 2020-05-21T04:00:00+00:00

Account features

Participating children could receive an initial deposit of as much as NT$10,000 (approximately US$335) into their CFEDA. Participants’ parents or legal guardians could choose between three monthly saving levels of NT$500 (approximately US$17), NT$1,000, (approximately US$33) and NT$1,250 (approximately US$42). The government would match these deposit levels at a 1:1 ratio with a maximum of NT$15,000 (approximately US$500) per year, adding up to a maximum of NT$30,000 (approximately US$1,000) assets per year for each participant. If they do not drop out, each participant is expected to have a maximum of NT$ 540,000 (approximately US$18,000) by the time they reach the age of 18. Participants’ parents or legal guardians receive a bank statement every 6 months that detail the total amount of their deposits and matched savings. Withdrawals are restricted to emergencies, such as death of a child, serious health problems and other event of force majeure.

When CFEDAs are mature, the participants are encouraged to use the accumulated assets to pay for higher education, occupational training or business start-up fund; however, it is not mandated. Every participant needs to submit an application to indicate the purpose of the expenditure using funds from his or her CFEDA. If the specific plan for the money is not specified, withdrawal of the matched fund may be denied. To discourage participants from recklessly spending assets, the Ministry of Health and Welfare provides financial education to participants and their parents on how to invest savings in financial institutions, social service agencies and schools in an intentional way. If necessary, personal counselling is available to participants who need assistance making plans for using their savings. Financial institutions can also provide information for participants to transfer their saving to other financial products.

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