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San Francisco launches 'Kindergarten-to-College' savings program with city seed deposits and private partners
Summary
Mayor Gavin Newsom announced an automatic college-savings account program for entering kindergartners, backed by a city seed deposit ($50 or $100), Citibank account services (no fees, no minimums), nonprofit matches and a Gates Foundation grant to align SFUSD and City College.
San Francisco officials on Oct. 6, 2010, publicly launched a citywide program to open college savings accounts automatically for entering kindergartners, pairing a modest city seed deposit with private and philanthropic matching and a multi-year grant to support long-term alignment between the school district and City College.
Treasurer Jose Cisneros, who will oversee implementation, said the city will place an initial $50 or $100 deposit in each account depending on family circumstances to create a tangible savings vehicle for families that often lack bank access. "The account will be opened automatically," he said, calling the default enrollment a key innovation intended to create near-universal coverage.
Citibank's microfinance head said the bank will help open and host the accounts and that there will be no minimum balances or fees for parents or children. Nonprofit partner EARN pledged to match the first $100 of family savings in the program's first year, and other philanthropic partners and foundations committed to financial literacy and incentive support.
Mayor Gavin Newsom and Superintendent (represented) emphasized the program's role in building college-going aspirations and reducing disparities: officials cited that many low-income families lack basic banking access and that the accounts will be supplemented by a financial-literacy curriculum and private matches.
The Gates Foundation selected San Francisco as one of four cities to receive an institutional alignment grant for City College and SFUSD; officials said the grant provides $3 million a year for three years to help align K'12 and postsecondary systems to improve college completion.
Officials described next steps including account rollout this fall, partnerships with community groups to engage families, and data collection and evaluation of program outcomes.
(Attribution: quotes are from Mayor Gavin Newsom, Treasurer Jose Cisneros, Citibank and nonprofit partners at the City College event.)
