By Amy Ash Nixon, VTDigger.org
Vermont will soon join a number of other states in launching a children’s savings account program aimed at encouraging more low-income children, and their parents, to consider higher education.
Under a bill passed by the Legislature, savings accounts will be opened for every baby born in Vermont—$250 will be deposited for those who are not low-income, and $500 for those who meet federal poverty guidelines. It’s estimated that $2.5 million to $3 million will be needed to open savings accounts for the 5,000-6,000 babies born in Vermont each year.
The savings accounts will be funded through philanthropic contributions from foundations and fundraising efforts—not from state taxes.