By Carolyn Jones, EdSource, July 29, 2021
College savings accounts can help cover tuition costs, but some researchers say their real value is more nuanced. The very act of opening a college account for a young child can motivate that student to excel in school and aim for post-secondary education, they say.
“Child savings accounts set up these high expectations from a young age,” said Shira Markoff, director of children’s savings at Prosperity Now, a nonprofit focused on closing the racial wealth divide. “It’s a way of saying, ‘Our community believes in you, we’re investing in you, we have high expectations for you.’”
The idea of college savings accounts has been around for decades, and in the 1980s states began creating 529 plans that granted tax benefits to those who contributed money for a child’s college education.
Comments (0)