The city of Cincinnati is partnering with Fifth Third Bank to start college savings accounts for 150 preschool-age children, with an initial deposit of up to $553 in the first year.
"We want to build a Cincinnati where every kid — no matter what their background is or how much money their family has — has the opportunity and the belief that they can achieve their dreams," said Mayor Aftab Pureval.
Families making less than 300% of the will be eligible. That's about $111,000 for a family of four. It's the same eligibility criteria for assistance through , which is helping the city promote the program and contact eligible residents.
The accounts will be through , which can be used to pay for post-secondary programs like two- or four-year college, trade school, certificate programs, and apprenticeships.
"Research shows that children with even $50 in a college savings plan are three times more likely to pursue education beyond high school than their peers," said the city's Human Services Director Deanna White. "This is an investment in hope. This mayor, Council and administration believe deeply in children reaching their full potential after high school, whether that be through a trade, an apprenticeship, or a degree, and today we are making an investment in that belief."
How does it work?
The city will deposit an initial $100 in each account, plus $53 donated by Fifth Third Bank. The city will deposit an additional $100 for meeting up to four incentives over the course of a year:
- 85% attendance rate that school year
- Family investing any amount into the account over the course of the year
- Not withdrawing in the first year
- Family filing taxes
A 529 Plan can grow over time with interest, and can be invested like a retirement account.
How can you participate?
The city is partnering with the United Way to administer the program, and with Preschool Promise to identify eligible families and promote the opportunity.
Families of preschoolers enrolled in a Cincinnati Preschool Promise program can call 211 to get enrollment information, or learn more on the United Way website at .
The program is limited to 150 children for the first year, as a pilot program.
"We will make a determination based on the pilot data as to whether we will be able to afford a new class of students next year, or whether we will continue to invest into the original class, or some kind of a combination of both," Pureval said.
Anyone in Ohio can start a 529 Plan with their own money, regardless of income or child's age. You can learn more at .
What is Cincinnati's Financial Freedom Blueprint?
City Council allocated $2.12 million in funding for the Financial Freedom Blueprint in 2023 for the fiscal year 2024 budget. It included plans for child savings accounts and other initiatives aimed at reducing poverty in Cincinnati, especially the racial wealth gap.
, 24.5% of the city population lives below the poverty line, nearly double the 12.4% national average.
One Financial Freedom Blueprint program is medical debt relief, which has already erased $134 million in medical debt for 34,000 Cincinnati residents as of Aug. 2024. Pureval says an update on that program will be available soon.
Pureval also had plans for a guaranteed basic income pilot program; he said Wednesday that is no longer being considered.
"Making sure that vulnerable families get financial resources directly in order to help them cover basic necessities was a recommendation from the Financial Freedom Blueprint, and the concern about food deserts was also a recommendation," Pureval said. "We will be addressing those twin concerns with one public-private partnership that I'm very excited about, but we'll be announcing with Council member [Anna] Albi in the next few weeks."
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