Kellogg Asset Building for Children
With support from the Kellogg Foundation, CFED is seeking to expand the impact, effectiveness, and availability of children’s savings accounts as a tool to promote asset building and financial capability for low-income and minority children and youth. CFED is developing scalable and financially sustainable children’s savings account programs for at least 500 children and their families in Michigan and Mississippi.
Beginning in Fall 2011, CFED plans to launch a CSA pilot in each state with the following objectives:
- Develop a scalable and financially sustainable program, piloted with at least 500 children and youth in the first two years.
- Leverage existing community and state resources, adding to established programs or initiatives within the state.
- Expand opportunities for low-income children and families to accumulate assets and increase children’s college-going aspirations.
The pilot in Grand Rapids, MI, led by LINC Community Revitalization, will open a children’s savings account for a select cohort of children entering kindergarten over the next two years. Every child entering kindergarten in 2011 and 2012 in the 4 pilot schools will automatically receive a college savings account with an opening deposit of $50. Participating children will receive in-class financial education, and their families will be provided financial coaching opportunities.
Delta State University and the Mississippi Community Financial Access Coalition (MCFAC) are partnering in Mississippi to bring CSAs to multiple communities. Preschoolers in the City of Jackson’s Early Childhood Development program, as well as kindergarteners in Washington County’s Leland School District, will receive college accounts with a $50 seed deposit. Children will receive financial education in the classroom, and their parents will also have the opportunity to access financial training.