For a city to remain economically stable and navigate the increasingly sophisticated job market, its workers must have post-secondary credentialing that allows them to secure jobs that pay family-sustaining wages. In addition, employers take into account residents’ education and skills when deciding whether to relocate to an area.
Children’s Savings Account programs (CSAs) assist in increasing the number of low- and moderate-income children who achieve a postsecondary credential or degree. CSAs are long-term savings or investment accounts that provide incentives to help children, especially low-income children, build dedicated savings for postsecondary education.
Children with savings dedicated to education after high school tend to have greater post-secondary expectations. They are more likely to see themselves as bound for education post-high school than children without targeted savings.
An evaluation of the first universal and automatic city-run Children’s Savings Account program, the City of San Francisco’s Kindergarten to College (K2C) program, has found that:
Hover to reveal what the percentages mean
The percentage of K2C participants that were more likely to enroll in college than the comparison group.
The percentage of students from underrepresented groups – Black/African American, Hispanic/Latino, Filipino, Pacific Islander, or American Indian/Alaskan Native – who were more likely to enroll in college than similar students in the comparison group.
How much higher the on-time graduation rate was from K2C participants from the underrepresented groups than the comparison group
By managing their accounts and participating in financial education programs often associated with CSA programs, CSAs help children and families increase their overall financial literacy.
Since 2013, NLC’s Economic Opportunity and Financial Empowerment (EOFE) team has worked with cities of all sizes throughout the country to launch ,grow, and strengthen their CSA programs through peer-learning collaboratives. Additionally, NLC works with cities, towns and villages to help them leverage state or federal investments supporting youth educational attainment after high school.
As part of the learning collaboratives, cities have produced and shared materials such as formalized agreements, budgeting documents, talking points, and outreach and launch materials. NLC is happy to share CSA materials and lessons learned, as well as connect interested cities with their peers who are running CSA programs.
Related Resources:
From Cradle to Career: How Cities Can Help Families Save for Education and Beyond
- Kayla Anthony
- Patrick Hain
How Does the Big Beautiful Bill Impact Savings Accounts for Postsecondary Education?
- Patrick Hain
- Kayla Anthony
Building a New Model: Cincinnati’s Financial Freedom Blueprint in Action
- CitiesSpeak Guest
How San Francisco is Boosting College Enrollment for All Youth
- Patrick Hain
4 Tax Time Opportunities for All Municipal Leaders
- Patrick Hain