A recent article in our local Madison WI paper about youth savings caught my attention. With the HUGE college debt burden that is growing, this is a solution! According to a research firm from Washington University in St. Louis, low and moderate income children with savings under $500 are THREE times as likely to enroll in a college than a child without an account. Children with savings accounts are more than 4.5 times more likely to graduate from college. By enrolling in a savings account a "college bound identity" is being created.
This article brought back vivid memories of my Mom and I depositing my leftover change into a savings account at a young age. I was excited to see the balance grow over time. I proposed the following to my 10 yr old daughter: Whatever she would deposit I would match 50% to get her thinking about the power of compounding interest. She deposited a portion of her checks from a high school job and was pretty motivated as we got closer to college about the matching piece.
I'm proud to say that she now fully invests in a 403B savings plan (with matching funds) through her employer at a young age of 22. Our youth need to be shown a path towards financial freedom by making early investments and using the "power of time" to grow their wealth.
Full article here: https://madison.com/ct/news/local/govt-and-politics/consultant-recommends-guidelines-for-madison-youth-savings-accounts/article_a679d283-3f8f-53c5-8ef7-8d502a990313.html
- Madison Youth Savings Account is being recommended by a financial consultant.
- Kindergartners and 6th graders would be eligible for enrollment.
- Seed deposit of $25
- Program would be contingent upon fundraising deposits that would match 50% up to $100
- Matched savings are only used for education expenses.
- Funds are available for a 10 yr period
- The program would cost $1.4MM in the 1st 3 years.
- There are already 65 active Youth Savings programs in the US, Madison WI should become the next one!
This article brought back vivid memories of my Mom and I depositing my leftover change into a savings account at a young age. I was excited to see the balance grow over time. I proposed the following to my 10 yr old daughter: Whatever she would deposit I would match 50% to get her thinking about the power of compounding interest. She deposited a portion of her checks from a high school job and was pretty motivated as we got closer to college about the matching piece.
I'm proud to say that she now fully invests in a 403B savings plan (with matching funds) through her employer at a young age of 22. Our youth need to be shown a path towards financial freedom by making early investments and using the "power of time" to grow their wealth.
Full article here: https://madison.com/ct/news/local/govt-and-politics/consultant-recommends-guidelines-for-madison-youth-savings-accounts/article_a679d283-3f8f-53c5-8ef7-8d502a990313.html
RSS Feed