365 very excited Lansing kindergartners were
the first recipients of a free education savings account. We are the first community in the nation that
actually has a permanently endowed fund that will forever give a kickstart to career for
every kindergarten student in our country. Is school fun? YEAH! Yeah! The credit union is hoping that we can
help you with some savings so that you can go to college. Does that sound like fun? Keep
going to school? YEAH! [clapping] So Lansing SAVE is the first universal and
automatic college savings platform in Michigan. And then in the fall of 2015, we actually
have another community, Barry County, will be launching. Once the account has been established, then
the parents will get letters that tell them all the activities of this child’s savings
account, where it’s held, how the account will be in the child’s name and the child
will be the beneficiary of the fund. And we’re working with a local community bank, so first
of all, that’s something different. I know in Lansing they’re working through a credit
union. Right now the MSU Federal Credit Union has
started the seeding of these accounts with an initial $5 deposit. That savings is then dedicated for college,
so the accounts are deposit only and the student account holders will not be able to withdraw
fund until they graduate from high school and enter into college or another post secondary
education or training opportunity. Thank you! You’re welcome! He goes to Cumberland Elementary School. He’s
been going there for about a couple years now. Enjoys it, loves it. Is then he going to plan to go to college? I would hope so. I want him to. He needs to. We need more of our young people with access
to higher education, and that’s what this is about. Less than 1/10 students from low income families
will graduate by age 26. When they have a college savings account in their name, they’re
actually 4x more likely to graduate. We’ve given them piggy banks today. But
we also gave them an account. We also gave them a link. We gave them a line to a financial
institution. For many families this might be the first line, their first link to a financial
institution, and that is vital. We know that some families may not need that
assistance, but we want this to be fair and equitable for everyone. We don’t want this
to be a program that only the needy can apply for or qualify for. We want this to be right
across the board. We also know that there are other families
that have never really had that experience of making savings. So the conversations we’re
having right now with curriculum directors and with our superintendents and our education
network is how can we incentivize good behaviors? And we know that when they’re kindergartners
it’ll be probably basic, but as they get older, they can really learn some important
things. Understanding FAFSA, understanding what signing your name on your student loan
actually means for you after you complete your degree. In addition to financial education, we are
working with University of Michigan and University of South Carolina to connect the future college
bound identity to your current activities and engagement in school. So I’m doing things
academically today so that I can achieve my college bound future, but I’m also doing
things financially today by saving in my account to achieve my college bound future. Are you excited about the piggy bank? YEAH!