Create and Fund Postsecondary Savings Accounts
The Commission recommends the creation and funding of college savings accounts that can be used for a wide variety of postsecondary education options and are automatically created for all children at birth with an initial deposit that will grow over time.
Research shows that, in addition to a more widely understood finding that greater household assets increase a learner’s likelihood of enrolling in college, the possession of liquid assets in a child’s early years, before age 10, has a positive impact on children’s postsecondary opportunities. Further, recent research on college savings accounts opened at birth and seeded with a modest initial deposit has found these accounts are an effective tool to reduce both financial and nonfinancial barriers, with impacts on elementary academic achievement, increased savings for postsecondary opportunity, and increased hopes and expectations for children’s postsecondary education among parents.1 Eligibility for these savings accounts could mirror other financial aid programs such as Pell Grants or state-based financial aid.
Related Promising Practices
CollegeBound Saint Paul
CollegeBound Saint Paul is a savings account initiative helping families build a strong foundation to invest in their children’s education and future.
- MN
- Financial Aid
- K-12 Educators & Leaders
- Philanthropists
- Policymakers
SEED for Oklahoma Kids
SEED for Oklahoma Kids is a statewide savings initiative that deposited $1,000 into an Oklahoma 529 account for selected 2007 newborns.
- OK
- Financial Aid
- Policymakers
Across the country, promising city and state government–led pilots are generating strong research and momentum that can and should be built upon, including SEED for Oklahoma Kids and CollegeBound in Saint Paul, Minnesota.2 As one of the nation’s largest college-savings programs, the popularity of Pennsylvania’s 529 accounts has been bolstered by state incentives, such as seed funding of $100 for every baby born or adopted in the state and tax-code provisions making contributions deductible from state income taxes.3 A recent study also found a correlation between the number of 501(c)(3) nonprofits in a zip code and increased college-savings behavior, highlighting the importance of community-based organizations partnering with schools and state treasuries to help families navigate these resources.4
Related Promising Practices
Connecticut Baby Bonds
CT Baby Bonds is a first-in-the-nation initiative that invests funds on behalf of each baby whose birth in Connecticut is covered by Medicaid.
- CT
- Financial Aid
- Policymakers
Endnotes
- 1
Madeline Brown, Marokey Sawo, and Ofronama Biu, What Do We Know About Baby Bonds: A Summary of Literature (Urban Institute, August 2023), https://www.urban.org/sites/default/files/2023-09/What%20Do%20We%20Know…; Sondra G. Beverly, Margaret M. Clancy, and Michael Sherraden, Universal Accounts at Birth: Results from SEED for Oklahoma Kids, CSD Research Summary no. 16–07 (Washington University, Center for Social Development, March 2016), https://openscholarship.wustl.edu/cgi/viewcontent.cgi?article=1325&cont…; and Charles Stewart Mott Foundation, “Seeding the Future: Large-Scale Study Confirms Children’s Savings Accounts from Birth Boost Postsecondary Prospects,” November 23, 2022, https://www.mott.org/news/articles/seeding-the-future-large-scale-study….
- 2
Oklahoma State Treasurer, “Seed for OklahomaKids,” https://oklahoma.gov/treasurer/seed-for-oklahoma-kids.html (last updated April 25, 2025); and Saint Paul, Minnesota, “CollegeBound Saint Paul,” https://collegeboundstp.com.
- 3
Pennsylvania Treasury, “PA529,” https://www.pa529.com.
- 4
Taylor Odle and Robert Nathenson, “Geographic and Community Influences on College Savings: Evidence from the Universe of Pennsylvania 529Account Holders,” EdWorkingPaper no. 26–1437(Annenberg Institute at Brown University, March2026), https://doi.org/10.26300/qqbj-bk73.
