Saving for Education, Entrepreneurship, and Downpayment (SEED)


Malik

What difference would it make if every child were born with an account that he or she could use at maturity to go to college, buy a home, start a business, or save for retirement?

A number of state and federal initiatives and privately funded programs have been launched in the belief that an investment in universal children’s accounts, like investments in early childhood education and healthcare, will produce huge long-term returns for children and for society.

Maliq, SEED participant in Chicago, at his lemonade stand.

Click here to learn about children's savings accounts on the State and National Level.

The SEED Initiative

The SEED Policy and Practice Initiative is a 10-year national initiative to develop, test, and promote matched savings accounts and financial education for children and youth. The initiative seeks to set the stage for universal, progressive American policy for asset building among children, youth, and families.

The SEED Initiative brings together community partners that design, administer, and document specific aspects of children’s savings programs. The partners are establishing a total of 1,325 accounts that engage different age cohorts, savings incentives, financial education approaches, and financial institutions.

The Sargent Shriver National Center on Poverty Law and the William J. and Charles H. Mayo Elementary School in Chicago have partnered to deliver 75 SEED accounts to elementary school students. Each accountholder received an initial deposit of $500 and can earn a dollar-for-dollar match up to a total of $1,500. As of April 2007, SEED participants have accumulated more than $50,000 in their accounts, including matching funds.

The Shriver Center provides financial education classes after school to SEED participants at the Mayo Elementary School, which is located on the South Side of Chicago. Unlike many other sites, SEED accountholders and families in Chicago are saving directly into 529 college savings accounts, which are held by CHASE.

Harlem Children's Zone, a SEED community partner, was recently featured on 60 minutes.

Click here to see what is happening in other communities across the nation.


SEED's Impact

The SEED program has affected both the children and the parents in the program. Three participants shared with SEED Director, Lorri McClinton-Powell, what the program means to them.

" ...I can buy things and save at the same time." Read the rest of Kendell's Dear SEED letter here.

" SEED has taught me to get a good education and never drop out of school." Read the rest of Kevin's Dear SEED letter here.

"Without SEED, I probably wouldn't have a college fund." Read the rest of Nicole's Dear SEED letter here.


Saving is no longer a burden: how a SEED parent plans ahead.

Sandra Bingham, 37, is a single parent and has twin girls who participate in SEED. Nicole and Nachelle are eleven years old and attend Mayo Elementary School in Chicago. At first, Ms. Bingham couldn't make monetary contributions into her children's SEED accounts. While attending college and accruing expenses, Ms. Bingham realized that "saving for my children's college education will help me in the long run with their college expenses."

Since SEED's second program year, Ms. Bingham has consistently deposited the required amount of $30 per quarter for both of her children. Her sacrifices to make the deposits are the results of "...cutting back on spending and sticking to a budget." In the beginning, Ms. Bingham felt she had "too many irons in the fire to save" but since she has been saving consistently she stated, "Saving is no longer a burden."


National SEED Partners



Click here to learn about children's savings accounts on the State and National Level.