July 29, 2021
College savings accounts can help cover tuition costs, but some researchers say their real value is more nuanced. The very act of opening a college account for a young child can motivate that student to excel in school and aim for post-secondary education, they say.
“Child savings accounts set up these high expectations from a young age,” said Shira Markoff, director of children’s savings at Prosperity Now, a nonprofit focused on closing the racial wealth divide. “It’s a way of saying, ‘Our community believes in you, we’re investing in you, we have high expectations for you.’”