Program sets up Pa. children with seed money to start saving for college

[modrepub]

Pennsylvania has become the latest state to automatically give a forward-looking birthday present to babies born in Pennsylvania or adopted by Pennsylvania residents after Dec. 31.

It's a present that the newborn or his or her parents may be grateful for down the road when it comes time to to pay for the child's post-secondary education, which is increasingly becoming a requirement in the 21st century workforce.

The Keystone Scholars program signed into law by Gov. Tom Wolf on Friday creates a college savings account and deposits $100 into the account for the 140,000 babies born annually in Pennsylvania as well as those adopted by state residents.

In establishing this program, Pennsylvania becomes the largest state in the nation to implement an automatic universal child savings account program.


Link: https://www.pennlive.com/politics/index.ssf/2018/06/program_sets_up_pa_children_wi.html

[Moostache]

1. Not to demean the intent...but at the rate costs for IN-STATE college sis rising, that's an insult.

$100, really? A whole $100? Not a savings bond $100?

Here's the rule of 72:
The "Rule of 72" is a simplified way to determine how long an investment will take to double, given a fixed annual rate of interest. By dividing 72 by the annual rate of return, investors can get a rough estimate of how many years it will take for the initial investment to duplicate itself.

At an unheard of annual return of 12%, it takes 6 years for an investment to double in value.
If, and I would LOVE to see this kind of consistent returns myself, that $100 maintained 12% annual interest, it would double....three times by age 18 (or Freshman year) once at age 6 (to $200), then at age 12 (to $400) and then again at age 18...leaving our intrepid college student with....$800. In 18 years.

According to The College Board®, the average 2014-2015 tuition increase was 3.7 percent at private colleges, and 2.9 percent at public universities. However, looking back at the last decade, the 10-year historical rate of increase is approximately 5 percent.

If the real costs of attending universities and colleges are not brought down to levels we haven't seen since the 1980s, and FAST, college is becoming a luxury of the upper class once more. Education wasted on entitled dude-bros and princesses while the underclass is shoved out inexorably. A society that does not welcome new members, that does not take care of its own in sickness, and does not educate EVERYONE to maximum individual effect is a society that deserves to end, period.

The only question is will the climate kill everyone before the rich can kill more poor?

[modrepub]

2. Hardest Part Is Getting Started

While I wouldn't disagree with anything you said, most people never start saving for anything. I started shortly after my kids were born, just me and my wife. Both my kids will be in college this fall at PA state schools. Between small scholarships and my TAP credits I should be able put both of them through school (and theoretically have them pay me back some of their tuition). I encourage everyone to start small. Money in the bank and hope for the future (and maybe the next generation will get this right).