Education Savings Accounts: A Vehicle for School Choice

Fifty years ago, Milton Friedman launched the modern school-choice movement with his essay “The Role of Government in Education,” in which he proposed a parent-directed system of school vouchers. Friedman’s idea is now becoming a reality with millions of Americans using charter schools, scholarship programs, and tuition tax credits.

This paper offers another vehicle to improve parents’ control over their children’s education: allowing them to open an Education Savings Account (ESA) for each of their children. ESAs begin with the idea that a successful primary education is the foundation of the American dream, and that parents are the best stewards of their children’s education. Instead of channeling children’s education funding through the public education system, the government would deposit those funds directly into each child’s ESA. Parents could then choose a private-, charter-, or publicschool education for their child or pay for other qualified education expenses such as tutoring. Unspent money would accumulate and parents could eventually use those savings for college or job-training programs. Parents can also contribute to the accounts.