The BabySteps Savings Plan is Massachusetts’ first statewide seeded college savings account program, designed to empower families to plan and save for their children’s higher education. This program follows State Treasurer Deborah B. Goldberg’s college savings account pilot program (SeedMA) in Worcester and Monson.
With the launch of BabySteps, every child born or adopted after January 1, 2020 who is a Massachusetts resident, will be eligible within one year of birth or adoption to receive a $50 seed deposit into his or her U.Fund account from the State Treasurer’s Office. Families simply need to open a U.Fund 529 College Investing Plan account to receive their funds.
• Increase the percentage of children saving for higher education in Massachusetts
• Deliver high-quality financial education programming to families, building a culture centered on saving for the future and employing prudent budget management
• Boost postsecondary enrollment and graduation rates for Massachusetts students by fostering aspirations of higher education for economically vulnerable and disadvantaged children
• 529 college savings accounts are flexible, tax-advantaged investment accounts specifically designed to help families save for higher education
• $50 incentive will start your child’s 529 college savings account
• Starting to save from birth can boost account accumulation and positively impact multiple dimensions of your child’s life, including academic performance and social-emotional development
• Wrap-around financial education services will be provided through the program
• Research shows positive results from saving early, including that low- and moderate-income children with less than $500 in college savings are 3 times more likely to attend college and 4 times more likely to graduate than students with no college savings AND children with college savings are 31% more likely to expect to go to college than children without college savings*
*William Elliot III and Sandra Beverly, “The Role of Savings and Wealth in Reducing ‘Wilt’ Between Expectations and College Attendance,” George Warren Brown School of Social Work Center for Social Development (January 2010): 1-2.