Why San Francisco Is Giving $50 to Kindergarteners

San Francisco is giving $50 each to its kindergarteners. Why? To encourage them, and their parents, to save for college.

That's right. The city, beginning with a pilot this year and expanding to all schools by 2012, will set up a college savings account with an opening deposit of $50 for every child entering kindergarten in a San Francisco public school.

Family, friends, employers and children can make additional deposits into the account -- and the city will raise money to match deposits. According to a press release, there's already enough money to match the first $100 in deposits.

There are other tie-ins, including an additional $50 deposit to families who return applications for free and reduced lunch programs on time, and a financial education program that will use the college savings accounts as teaching tools.

You can read more about this here. (Full disclosure: I'm a fellow at the New America Foundation, where some staff have worked to develop the program).

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