City Hall opened a savings account for every kindergarten student in New York and put money into it

All current NYC public school kindergarten students now have $100 in a college savings account. The new program went into effect this week, Mayor Eric Adams announced on Wednesday, May 5, reports Silive.com.

Last September, former Mayor Bill de Blasio announced that starting this school year, every kindergarten student would receive a baby bond savings account worth at least $100. It can be used to pay for college tuition. Called the NYC Kids Rise Save for College Program, the initiative aims to bridge the welfare and education gap for public school students.

Mayor Eric Adams said 97% of kindergarten students across the city have access to a New York City account to save money for college and vocational training. Families can manage the account through program website.

“We need tangible and practical solutions to close the racial wealth gap, especially as we emerge from the pandemic,” Adams said. - Save for College can reduce the amount students and families have to borrow in student loans. The student debt crisis has disproportionately affected students of color. I am proud to announce the activation of thousands of scholarship accounts, bringing New York students one step closer to financial assets.”

NYC Kids RISE owns and manages scholarship funds on behalf of participating students and invests in New York's 529 College Savings Program Direct Plan. This is a type of investment account specifically designed to help you save on higher education. Every kindergarten student, starting this year and every year thereafter, automatically receives a scholarship account, unless the family refuses.

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Once a child is enrolled in the Save for College program, DOE NYC Kids RISE, a nonprofit partner, will create a scholarship account in New York and automatically allocate $100 towards an educational future.

“Today is a historic day as we take a giant step toward making college and careers more accessible to our students,” said New York City Department of Education President David C. Banks. “The money flowing into the accounts today is planting seeds that will instill a sense of financial literacy and open doors for our youth for decades to come.”

Over time, NYC Kids RISE will provide families with the opportunity to earn more money in their student scholarship account. Community organizations, businesses, and others can also fund their accounts with Community Scholarships to help students reach their college and career goals.

Families can receive up to $200 in additional rewards for their child's scholarship account by taking certain steps. The first step is to open and connect a separate college and career savings account that they own for their child. The funds will be available when the children finish high school.

“Every student, regardless of their origin or postal code, has the right to have the opportunity to receive higher education. And financial hardship should not be an obstacle along the way,” said board member Camille Hanks. “The NYC Kids RISE Save for College program is an investment in our children's future. And a great way to engage local communities with the next generation of New Yorkers.”

The Save for College program provides elementary schools with classroom financial education lessons and new college and career learning activities. Families can participate in financial empowerment activities, college education workshops. And also connect to individual counseling in the city's Financial Empowerment Centers.