Mississippi Children Save for College with Pilot Program
Effort Will Provide Seed Funding, Financial Education
Jackson, MS – More than 150 Jackson-area children took an big step on the path toward college during a visit to Hope Credit Union (HOPE) as part of the Mississippi College Savings Account (MS CSA) Program. The two-year pilot project will help more than 500 families across the state develop savings habits that will fund college tuition costs.
The MS CSA program seeks to address the gap in educational attainment affecting low- income and minority students in Mississippi, where less than 15% of 9th graders end up transitioning to and completing college. The program will help children develop good saving habits, create a financial nest egg, and pave the way for college.
“Educational attainment is one of the best predictors of success in life,” said HOPE CEO Bill Bynum. “Combining lessons about the importance of saving, with incentives for securing a good education, builds a solid foundation for long-term success.”
In Jackson, the program establishes an account at HOPE for each participating child enrolled at Virden, Jones and Westside Early Childhood Development Centers. To give participants a boost, MS CSA is making a seed deposit of $50 when the account is initially opened. Accounts will be built with deposits from the child, family members, friends, and community organizations, as well as interest earnings generated over time.
Proceeds from the savings accounts can be only be accessed upon the child’s admission to a postsecondary education program at a university, college, community college, trade school, vocational training program or another accredited institution. Funds may be used to pay for educational expenses such as tuition, room and board, or other fees required by the institution.
Financial education for participants is another important program component. Children and their families will receive ongoing financial education that teaches core money management, saving and investing. Children will receive at least five hours of classroom financial education, and parents will be offered training through the NeighborWorks America Financial Literacy Program and the FDIC Money Smart Curriculum.
“Financial education fosters financial stability for individuals, families, and entire communities,” said MS CSA Program Coordinator Lakisha L. Butler. “The more people know about credit and banking services, the more likely they are to increase savings, buy homes, and improve their financial health and well being.”
Teachers and partners have worked to create and maintain momentum with parents and students. Activities such as classroom parties and parent awards have helped increase enrollment rates and maintained interest in the program.
The Center for Community and Economic Development (CCED) at Delta State University, the Mississippi Community Financial Access Coalition (MCFAC) and Hope Credit Union (HOPE), have partnered with the City of Jackson, Department of Human and Cultural Services to make incentivized college savings accounts to available to Mississippi children. The initiative is supported by a grant from the W.K. Kellogg Foundation in partnership with CFED (the Corporation for Enterprise Development).
The MS CSA Program is also being offered in Greenville, Mississippi, at Fulwiler Head Start Center, and in Leland, Mississippi, at Leland Elementary School and Page-Moore Head Start Center.