PITTSBURGH, PA — Treasurer Stacy Garrity announced that families have collectively saved over $100 million through the Keystone Scholars program using PA 529 College and Career Savings Program accounts. This announcement, celebrated Wednesday in Pittsburgh, showcases the collaborative efforts of Neighborhood Allies and Point Park University in promoting financial planning for future education.
The Keystone Scholars initiative, which started on January 1, 2019, provides a $100 education investment to every newborn or newly adopted child in Pennsylvania without utilizing taxpayer dollars. The program encourages early savings for education, leveraging existing resources to foster sound financial habits. “Keystone Scholars is designed to encourage families to save early for education, and today’s announcement shows that it’s working,” stated Treasurer Garrity. She highlighted the program’s role in making the first step in savings easier for families, thus facilitating educational planning for diverse career paths.
PA 529 accounts offer tax advantages and are crucial in reducing the financial burden of post-secondary education. Studies show that even modest savings through such programs significantly increase the likelihood of children attending and completing higher education. This becomes increasingly vital as educational costs rise, making financial preparedness essential for families.
Neighborhood Allies, through its Fund My Future PGH program, has been instrumental in boosting the adoption of Keystone Scholars accounts, particularly in Allegheny County. The initiative motivates families with over $2,000 in monthly prize pools, encouraging regular savings and fostering a proactive approach to educational finances. Toni Corinealdi, Senior Program Manager at Neighborhood Allies, emphasized the goal of ensuring every child in Allegheny County has a savings account by school entry, supported by their partnership with Keystone Scholars.
Point Park University, a key partner, emphasizes the critical issue of college affordability. Marlin Collingwood, Vice President of Enrollment Management, reiterated, “Keystone Scholars, which provides $100 starter deposits for every newborn in Pennsylvania, is doing great work to encourage early saving and make college a reality for more students.” This initiative aligns with Point Park’s commitment to making higher education accessible through a combination of institutional aid and family savings.
Currently, over 712,000 children are eligible for Keystone Scholars across Pennsylvania, with Allegheny County leading in account claims. The accounts grow with the child, providing financial resources for various educational expenses beyond high school. The PA 529 plans offer both guaranteed savings and investment options, ensuring families can strategically plan for future educational costs.
The broader benefits of programs like Keystone Scholars extend beyond financial contributions. They enhance children’s social and emotional development, alleviate parental stress, and raise expectations for educational attainment. As these accounts mature, they offer families flexibility and security, enabling children to pursue diverse educational and career pathways.
Treasurer Garrity’s announcement not only celebrates financial triumphs but also emphasizes the importance of community partnerships in paving the way for a sustainable future for Pennsylvania’s youth. Keystone Scholars stands as a national model for Children’s Savings Account programs, illustrating the transformative impact of early financial planning and collaborative efforts.
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