New PA Program Offers $100 College Savings Account At Birth Or Adoption

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5 days ago

The Pennsylvania Department of Treasury, with the help of the General Assembly, has created the Keystone Scholars Program. The program places a $100 deposit into a 529 college savings account, given to every child at either birth or adoption. The program seeks to see more students enrolled in tertiary education in the future.

While $100 doesn’t seem like much in the world of college, the effect is more psychological. Studies have shown the children that have education savings from a young age are seven times more likely to enroll in some form of tertiary education. Furthermore, the studies suggest that the amount of money is not that significant; it’s the expectation that’s set from a young age that is.

The program is to be funded through investment earnings and philanthropic gifts and donations. It’s not going to cost the government any money, but they encourage parents to participate and try to add to the savings account. For example, if you place $25 in your child’s savings account every month until they reach college age, they will have $10,000 already.

New accounts are set to be valid until the age of 29. If the beneficiary doesn’t want to pursue tertiary education by this time, the beneficiary can be changed or the money can be withdrawn, with the exception of the $100 from the treasury department.