Every student entering kindergarten in the Newark Public Schools this year will get $25 toward a 529 college savings account — for many families, the first seed money to start saving for college.
The Newark Saves initiative will also see the district begin financial literacy courses for elementary school students and for their parents.
“Today we take a major step in addressing the challenge that not every child has the financial means to attend college, with the launch of Newark Saves,” said Newark Public Schools Superintendent Roger Leon.
“Providing comprehensive financial literacy workshops and college planning sessions at every single one of our 42 elementary schools. Adding incentive deposits for students who achieve good grades, maintain perfect attendance and participate in enrichment activities. Families can also earn additional deposits by parents attending parent teacher conferences, back to school nights, and all the other incredible school events for their children.”
Leon detailed how the district will work to engage as many families as possible with the literacy education courses, and with ways the students can grow their own accounts through academic achievement. The funding comes in partnership with Prudential Financial, which put up $150,000 to make these initial investments. FOCUS, the Hispanic Center for Community Development, will also assist with outreach efforts.
“We recognize that financial literacy in certain zip codes is something that’s so far beyond,” said Senate Majority Leader Teresa Ruiz (D-Essex). “Starting to teach financial literacy at a time when children are just imagining their first days of schools. Bringing in families that perhaps don’t understand how critical it is for us to live within our means and to make the dollars stretch as best as possible, and to save some money and make the best investments.”
Added Newark Mayor Ras Baraka: “Giving opportunities for young people, when they come into this world, to have a fighting chance, the superintendent, and Newark Saves is giving people in our city the opportunity to do that. Hopefully, we can get some other people to join Prudential in adding some more money to help our babies realize their dreams, because college is becoming more and more expensive.”
During the press conference, executive staff in Newark pledged more than $8,000 to the Newark Saves program. And Alamo Insurance, a Newark-based company, pledged an additional $10,000.
