A former Progressive Labour Party senator has called for the creation of $500 seed fund for every newborn — a scheme she said would lay the foundation for financial security and literacy for children.

Arianna Hodgson said the fund would be “an intentional, universal investment” in every child at birth and should be set aside and paired with age-appropriate financial education as they grow.

Ms Hodgson said in an opinion article in The Royal Gazette that the idea for the fund came to her as she read the most recent Pre-Budget Report unveiled by David Burt, the Premier, in December.

She said: “I couldn’t shake a familiar concern: once again, we are focused on managing today’s pressures without fully reckoning with what we owe future generations.

“I understand the constraints. I understand the trade-offs. But I also believe that if we are serious about building a resilient Bermuda, we must be more intentional about how we invest in our children — not just now, but over the long term.”

Ms Hodgson, a former PLP election candidate, said that because less than 500 children were born on the island annually, it was “not an unrealistic proposal”.

She added: “It is a practical, affordable and forward-thinking commitment to our collective future.”

The principle behind investing in children early is simple, Ms Hodgson said.

She told the Gazette: “We have the choice to pay now or pay later — and either way, the cost eventually returns to society.

“Choosing to invest now is about being intentional. It sends a powerful message to children: that they are valued, that their future matters and that we are willing to act today to create opportunities for them tomorrow.”

She said the move should not be seen as the “handing over a simple financial gift,” but rather, the creation of opportunities to teach, guide, open doors and start important conversations early.

“When we invest on the front end, we give young people real options,” Ms Hodgson added.

On the importance of education being tied to the scheme, she said children would be able to learn to balance short-term wants with long-term goals.

“Even simple choices — like deciding how to use allowance or gift money — become opportunities to teach, spark conversation and build habits that last a lifetime,” she added.

Ms Hodgson recalled attending a pension session last year where she realised “how differently I would’ve lived if I’d been planning to retire at 45 instead of 65”.

She said: “Starting early isn’t just about saving — it’s about learning to make choices with foresight.”

Ms Hodgson, who previously served as a Junior Minister of Labour, Finance and Health in the PLP, said Bermuda had the “infrastructure, the expertise and the fiscal capacity” to facilitate the scheme.

“The good news is that we don’t have to start from scratch — there are plenty of models around the world that can guide us,” she said.

In the short term, she suggested that legislation can be drawn up to establish child accounts while leveraging existing financial systems to keep administration simple.

In addition, she said initial contributions from the Government would seed those accounts.

In order to reap the most out of the system, she said contributions can expand over time, encouraging participation from families or individuals and can explore progressive government matching or incentives tied to saving and learning.

Ms Hodgson said structured financial literacy programmes can be integrated alongside the accounts and over time they may “reshape how we think about scholarships and grants”.

The key is to start small, she noted, adding: “Pilot programmes allow for adjustments, learning from early experiences and making sure we get it right before scaling up.”

She said: “Bermuda can do this. And we should.”

UPDATE: this article has been updated with additional comments from Ms Hodgson