State Treasurer: $50 college-savings fund for every Nevada kindergartner

Read her lips: No taxpayer dollars.

State Treasurer Kate Marshall announced Tuesday the statewide rollout of Nevada College Kick Start, a $50 college-savings fund for each of Nevada’s 35,000 kindergartners — 25,000 of whom live in Clark County.

Students are automatically enrolled, though parents can opt out.

The program costs $1.8 million annually. It is funded by fees the treasurer collects from financial institutions that manage college-savings plans in Nevada, such as USAA, Vanguard, State Street and Putnam Investments. Some funding is also donated.

Annual compound interest will vary, averaging about 12 percent, for a total of about $220 by the time a student enters college, typically 13 years later. Funds expire when the student turns 25.

“It’s not going to be $20,000,” Marshall said. “But what it is going to be is a way to start that conversation with that family, to tell that child that they’re college bound. And to help people think about and get in the door.”

Students must remain Nevada residents to access the funds, but the account can be used at any college in the country.

“That includes technical schools, culinary schools, that includes Harvard, that includes UNLV, that includes anything,” Marshall said.

Funds are held in a master account managed by Upromise in the Nevada College Savings Trust Fund’s name. Money cannot be added or withdrawn, though families are encouraged to start a separate savings plan.

Upromise recently lowered account minimums from $250 to $15 to start a tax-deferred SSgA Upromise 529 plan. The “529” refers to the Internal Revenue Service Code section that allows for the plan.

The treasurer’s office debuted the College Kick Start pilot program in fall 2013 for 3,000 rural students in 13 counties, and implemented it throughout the state ahead of schedule.

The College Savings Plan of Nevada’s board of trustees agreed to operate the program for a minimum of three years to evaluate its effectiveness.

Nevada College Kick Start is modeled after San Francisco’s Kindergarten to College, a city and county program that gives kindergartners $50 or $100, depending on household income.

Nevada is the first to create a statewide program.

Ohio’s Cuyahoga County, which includes Cleveland, gives its students deposit-only college savings accounts of $100. The Mississippi College Savings Account Program benefits students in Jackson and Delta.

The Center for Social Development at Washington University in St. Louis found that children with college-savings accounts are seven times more likely to pursue higher education than those without.

The University of Kansas’ School of Social Welfare concluded that saving for college sends a strong message to children that they are college-bound.

Nevada College Kick Start is one of many initiatives to create a “college-going culture” in the state.

A 2011 study by Complete College America estimated that 58 percent of Nevada jobs will require career certificates or college degrees by 2020. As of 2011, 28 percent of adults in Nevada held associate degrees or higher.

“College and career readiness starts in kindergarten,” said Clark County School District Superintendent Pat Skorkowsky. “We have to start with the mindset. We’re working hard on financial literacy skills in the elementary schools. …We have to build them at the elementary and we refine them as we go up. So as we get to middle school and high school, it is actually workforce readiness skills and the idea that college is not just an option. It is a necessity for them to be successful.”

Contact reporter Kristy Totten at ktotten@reviewjournal.com or 702-477-3809. Follow @kristy_tea on Twitter.

News Videos
Jim Foley talks about 30 years of living HIV-positive
Jim Foley, who was diagnosed as HIV positive 30 years ago, talks at his home in Las Vegas on Wednesday, March 13, 2019. (Chase Stevens/Las Vegas Review-Journal)
Traffic Slows to a Crawl on I-15S Near Primm
Traffic slowed to a crawl around 2:30p Sunday, on I-15S near Primm, Nevada.
Homeless residents speak about safety
The homeless residents living at the corner of Owens Ave. and Main St. reflect on how they feel about their safety after two homeless men died, one was hit crossing the street and another was beat to death by another homeless man. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye
CCSD Superintendent address alleged racially motivated threats at Arbor View
CCSD Superintendent Dr. Jesus F. Jara gives update on alleged racially motivated threats against Arbor View High School, and says such threats will not be tolerated. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Super Bloom Near Lake Elsinore, California
Crowds packed the hills near Lake Elsinore on Saturday to capture a rare selfie amidst the super bloom of poppies turning the landscape purple. The super bloom was caused by the larger rainfall this year. (Todd Prince/Las Vegas Review-Journal)
Fiery accident in Las Vegas
A three-car accident on Spring Mountain Road around 6:30 pm on Monday night
A bipartisan coalition holds simultaneous rallies to promote criminal justice
A bipartisan coalition holds simultaneous rallies to promote criminal justice. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye
Stardust implosion anniversary
Twelve years ago today, the Stardust Resort and Casino was imploded. (Mat Luschek/Review-Journal)
Lawsuits filed against security contractors at Nevada National Security Site
Two lawsuits were filed today against the current and former government security contractors for the Nevada National Security Site, one on behalf of Jennifer Glover who alleges sexual discrimination and assault and the other on behalf of Gus Redding who alleges retaliation after he gave statements supporting Glover’s claims. (Rachel Aston/Las Vegas Review-Journal)
New housing option helps Las Vegas moms keep kids while kicking drugs
WestCare Nevada Women and Children’s Campus in Las Vegas has added a new transitional housing wing for women who have completed the inpatient treatment at the behavioral health nonprofit to help them as they go through outpatient treatment, shore up their finances and prepare to secure long-term housing. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Teenager in critical condition after being struck by an SUV in Henderson
Authorities were called about 2:45 p.m. to the scene in the 2100 block of Olympic Avenue, near Green Valley Parkway and Sunset Road. The teenager was taken to University Medical Center in critical condition. (Michael Quine/Las Vegas Review-Journal)
The Water Question Part 3: Conservation loves a crisis
Future growth in the Las Vegas Valley will rest almost entirely on the community’s ability to conserve its finite share of the Colorado River.
The Water Question Part 7: How much can we grow?
Many experts agree that Southern Nevada can continue to grow, so long as residents are willing to do what needs to be done to stretch our crucial resource as far as it will go.
The Water Question Part 6: How many people can Southern Nevada’s water sustain?
The number can swing wildly depending on a host of variables, including the community’s rates of growth, conservation efforts and the severity of drought on the Colorado River.
Mylar Balloon Demo
NV Energy presented a demonstration Wednesday to depict the damage that can be caused by the release of Mylar balloons.
Educators dressed in red have taken to the streets to demand more for their students.
Educators dressed in red have taken to the streets to demand more for their students. Educators from around the State are bringing the Red for Ed movement to the steps of the Nevada Legislature in Carson City, NV, and to the Grant Sawyer Building in Las Vegas. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye
Nature Conservancy Ranch
The Nature Conservancy just bought the 900-acre 7J Ranch at the headwaters of the Amargosa River, north of Beatty. The property could become a research station, though ranching will continue.
Swift water rescue at Durango Wash in Las Vegas
On Thursday, February 14, 2019, at approximately 8:42 a.m., the Clark County Fire Department responded to a report of a swift water incident where people were trapped in the Durango wash which is located near 8771 Halcon Ave. Personnel found one person who was trapped in the flood channel. The individual was transported to the hospital in stable condition. Video by Clark County Fire & Rescue.
Flooding at E Cheyenne in N. Las Vegas Blvd.
Quick Weather Around the Strip
Rain hits Las Vegas, but that doesn't stop people from heading out to the Strip. (Mat Luschek/Review-Journal)
Aaron Semas, professional bull rider, talks about his traumatic brain injuries
Aaron Semas, professional bull rider, talks about his traumatic brain injuries. The Cleveland Clinic will begin researching the brains of retired bull riders to understand the impact traumatic brain injuries have on cognition. (Bizuayehu Tesfaye/ Las Vegas Review-Journal) @bizutesfaye
Matt Stutzman shoots arrows with his feet
Matt Stutzman who was born without arms shoots arrows with his feet and hits the bullseye with remarkable accuracy. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye
Secretary of Air Force Emphasizes the Importance of Nellis AFB
US Secretary of the Air Force Heather Wilson visited Nellis Air Force Base during Red Flag training and described how important the base is to the military.
Former Northwest Academy student speaks out
Tanner Reynolds, 13, with his mother Angela McDonald, speaks out on his experience as a former student of Northwest Academy in Amargosa Valley, which includes abuse by staff member Caleb Michael Hill. Hill, 29, was arrested Jan. 29 by the Nye County Sheriff’s Office on suspicion of child abuse.
Former Northwest Academy students speak out
Tristan Groom, 15, and his brother Jade Gaastra, 23, speak out on their experiences as former students of Northwest Academy in Amargosa Valley, which includes abuse by staff and excessive medication.
Disruption At Metro PD OIS Presser
A man claiming to be part of the press refused to leave a press conference at Metro police headquarters, Wednesday January 30, 2019. Officers were forced to physically remove the man. (Mat Luschek/Review-Journal)
Clients at Las Vegas’ Homeless Courtyard talk about their experience
Clients at Las Vegas’ Homeless Courtyard talk about their experience after the city began operating around the clock. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye
Las Vegas parts ways with operator of homeless courtyard
Jocelyn Bluitt-Fisher discusses the transition between operators of the homeless courtyard in Las Vegas, Thursday Jan. 24, 2019.(Caroline Brehman/Las Vegas Review-Journal)
Las Vegas police and Raiders partner with SafeNest
Las Vegas police and the Raiders partner with SafeNest on Project Safe 417 (the police code for domestic violence is 417). The program partners trained SafeNest volunteer advocates with Metropolitan Police Department officers dispatched to domestic violence calls, allowing advocates to provide immediate crisis advocacy to victims at the scene of those calls. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
North Las Vegas police chief discusses officer-involved shooting
North Las Vegas police chief Pamela Ojeda held a press conference Thursday, Jan. 24, regarding an officer-involved shooting that took place on Jan. 21. The incident resulted in the killing of suspect Horacio Ruiz-Rodriguez. (Mat Luschek/Las Vegas Review-Journal)
TOP NEWS
Home Front Page Footer Listing