For most kindergarteners, the first day of school can be exciting. Officials in Boston, however, made that day even more memorable by giving every kindergarten student in a public school a savings account with $50.
The new program, named Boston Saves, was announced Monday. It’s an expansion of a three-year pilot program that is devoted to helping children save money for their future college and career. The way it works is that the students are automatically enrolled in an online savings account. The best part is that they can use this account after graduating high school or once they have completed their GED, allowing them to accumulate money to be able to go to college, open a small business, and other goals.
“Boston Saves has proven to be an essential part of providing families with the tools to save for their children’s post-secondary future,” said Boston Mayor Martin J. Walsh in a statement. “I am pleased to announce the citywide expansion of Boston Saves, providing more families with these resources and strengthening the investment we are making in Boston’s youth.”
According to Fox Business, Boston Saves began in 2016 in 11 schools. Due to its growth, the organization expects to go statewide by the year 2020. In addition, parents are also encouraged to link their own accounts to their child’s savings account similar to a 529 college savings plan. The organization has various suggestions for deposits ranging from $20 to $25 a year, encouraging parents to continue saving or even just evaluate it with their child. The ultimate goal of Boston Saves is to educate and encourage families to make smart decisions about financial planning.
“This school year, we’re celebrating the full-scale launch of a great program called Boston Saves,” added Mayor Walsh. “Through Boston Saves, kindergartners are automatically set up with a savings account for college and career training.”