College Guide

Blog

October 06, 2010 8:52 PM San Francisco’s Token College Saving Plan

By Daniel Luzer

Update on the San Francisco plan to help kindergartners save for college: it’s now a reality. According to an article by John Cote in the San Francisco Chronicle:

About 1,200 newly enrolled kindergartners at 18 San Francisco public schools who will get a one-time payment of at least $50 in taxpayer funds placed in a special trust account. It can only be used to fund post-secondary education like a city college, vocational school or four-year university.
Lower-income students who qualify for the federal government’s free or reduced-price lunch program will start with $100, city officials said. The plan is to have corporations, nonprofit groups and others offer matching incentives to encourage children and their families to save.

Under the current plan, San Francisco plans to set aside a whopping $100 in a trust account for kindergartners in public schools.

The state of California, meanwhile, has basically no idea how to pay for the state university system when the kindergartners are scheduled to begin college in the fall of 2023.

Even the city of San Francisco is predicting a budget deficit of $460 million next year. Let’s see how long these city-sponsored savings programs last.

According to the article, one San Francisco foundation “has agreed to make additional matches for parents who take financial education classes.” Maybe low-income parents aren’t the ones who need the classes.

Daniel Luzer is the news editor at Governing Magazine and former web editor of the Washington Monthly. Find him on Twitter: @Daniel_Luzer