March 17th, 2022
Did you know that the state of Pennsylvania can kick-start your child’s college education fund? Keystone Scholars, a program run by the Pennsylvania Treasury Department through its 529 College and Career Savings Program, will invest $100 for every baby born to a PA family on or after January 1, 2019 for future educational expenses after high school. As the account value grows through the years, the money can be used for qualified higher education expenses including tuition, fees, books, and more at a vocational or technical school, apprenticeship, community college, or four-year university anywhere in the United States and at many schools abroad.
Once a child turns 18, the funds will become available in order to achieve the following objectives:
Our commonwealth’s future economic stability and job growth will be stronger if more families expect and plan for their child’s future education, whether that be vocational training, apprenticeships, community college, or four-year university. Currently, Pennsylvanians have one of the highest student loan debt loads nationwide and many families find it hard to get started saving when faced with many other household expenses.
Our goals are threefold:
1. Maintain high parental expectations for their child’s future.
2. Cultivate a future-focused identity in children.
3. Jumpstart family savings for postsecondary education as early as possible.
The Treasury cites research showing that children with college savings are three times more likely to pursue post-secondary education and four times more likely to graduate, even if the amount of savings is modest.
Realistically, $100 won’t grow very much over the course of 18 years, and parents are not allowed to deposit funds into their child’s Keystone Scholars account. The program is really meant to inform parents about the value of investing early and often in their children’s post-secondary education, and encourage them to open their own separate 529 college savings account into which money can be added regularly:
Every dollar counts when it comes to paying for education. The $100 is meant to help families jumpstart their savings as soon as possible. If a family saves just $25 per month starting when their child is born, by age 18 that could grow to approximately $10,000.*
It’s also not just about the money. Research shows that when children have some money set aside for future education, their parents are more likely to expect them to go on to study after high school, and they in turn, are too.
Learn more about the Pennsylvania Keystone Scholars program and find out how new and expectant parents can register here.
