State treasurer launches BabySteps savings program
By Canton CitizenState Treasurer Deborah Goldberg recently announced the successful launch of the BabySteps Savings Plan. This groundbreaking program guarantees every child born or adopted in Massachusetts will receive a $50 seed deposit when a family member opens up a U.Fund 529 college savings account through MEFA. The deposit comes at no cost to the taxpayers and will incentivize families of all income levels to start saving for their children’s future today.
“With the rising cost of post-secondary education, the path forward is unclear for many of our kids,” said Goldberg. “BabySteps will encourage thoughtful planning for higher education and vocational training for children across Massachusetts.”
To sign up for the program, parents simply need to check the box on the birth certificate form they receive in the hospital to start the enrollment process, or they can visit BabyStepsSavingsPlan.org to learn more about the program and get started.
All new parents/guardians in Massachusetts will have one year after the child is born or adopted to open a U.Fund 529 college savings account in order to receive the $50 deposit. The deposit will be transferred directly into the child’s U.Fund account offered by MEFA and financed by the Massachusetts State Treasurer’s Economic Empowerment Trust Fund with support from private donors.
One of the program’s founding investors, Bob Hildreth, the founder of Inversant and the Hildreth Institute, has committed to provide the seed deposit for each of the first 6,000 children to join the program.
“Seeing the impact a college education can have on students who grew up in poverty inspired me to seed fund the BabySteps program,” said Hildreth. “This initial deposit is not just my commitment to making college more accessible for Massachusetts students. It’s also a challenge to foundations and philanthropists: Join me in pledging additional resources and motivating families to open savings accounts and save for their children’s future!”
The BabySteps Savings Plan will also provide free financial education services to all families in the commonwealth. For more information, go to BabyStepsSavingsPlan.org.
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Posted by Canton Citizen
on Jan 10 2020. Filed under Business.
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