Did you know that children enrolled in grades K-5 in a Boston Public School can bank hundreds of dollars into a savings account over the course of their education to help pay for college or career training?
The program— called Boston Saves—started in 2019 under former Mayor Marty Walsh and continues under the Wu administration. This month, the program is putting out the call for more students and families to enroll and take advantage of an extra incentive.
Mayor Wu announced earlier this month that BPS families who join before the end of January will get $25 for a child’s account— for a total of $75 this calendar year for new signups.
The program is intended to help families with planning for their children’s future in college or their career of choice and to help youngsters take up financial literacy at an early age.
Currently, BPS students in K2 through fifth grade can participate and families can earn additional Boston Saves dollars throughout their academic years. The funds that get banked and saved over the years will be released upon a student’s graduation to help defray college tuition or a vocational training. Students must use the money before they turn 27, according to a city website that details how the program works.
“Starting in the fall of 2019, we’ve opened a children’s savings account for every student who’s in kindergarten, for $50,” said Boston Saves senior program manager Sasha VanDerzee. “Every year we add new kindergarteners, so right now K2 through fifth grade is eligible, but next year it will be kindergarten through sixth grade. Eventually, it will be K to 12 but we only add one grade a year,” said VanDerzee.
Eligible students who didn’t join in kindergarten can join up now, too. “We have fifth graders that log in for the first time that never heard about it or maybe just moved to Boston,” she noted.
The program relies on a network of volunteers called Family Champions who promote the opportunity within their school community. George Deveney, Sr., a Dorchester resident and father of two children, is the Family Champion at the Kenny Elementary School, where his son, George Jr., is a student.
“I was blown away by what I was hearing,” said Deveney. “Basically, there are not a lot of people taking advantage of this. It’s a great resource for people to have, but I think what I’ve enjoyed about it since we signed up was how it kind of forced me to get other financial things in order.”
During the first year of use, families can increase the $50 in their child’s account to $115 by participating in incentives, some of which are also accessible in succeeding years. For example, if a guardian links a financial account to the student’s Boston Saves account, they will receive an additional $25.
Families can also earn $5 for every three-month period that they save at least $25. There are other savings opportunities for those who are not able to add additional money to the account. For instance, families can earn up to $20 a year by reading with their children.
Deveney added: “When you do sign up, it’s worthwhile because there are activities that you could do throughout the year. The stuff you’re already doing like reading to your kid, that can earn you bonus dollars that get deposited directly into the savings account.”
VanDerzee says the mission is to get kids and parents thinking long-range about financial plans for education. “That might be college or university, that might be training programs, [but] all of that money goes toward that,” she said.
Deveney says he’s excited to help George and his younger sister Julie learn more about money management when the time is right.
“I think after the third grade is when I would have them potentially do that or have a more hands-on role,” Deveney told The Reporter. “I think it’s a great opportunity for them to learn about savings. It’s a great opportunity for them to learn about responsibility and to be thinking about their future.”
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