In an effort to foster a culture of saving for higher education, Oregon State Treasurer Elizabeth Steiner visited Vose Elementary in Beaverton to introduce the ‘Kinder Grad’ program. This initiative aims to double the number of college savings accounts by offering financial incentives to young students and their families.
Encouraging Early Savings
During her visit, Steiner, alongside Oregon Department of Education Director Charlene Williams, surprised the kindergarten class with a unique graduation gift. Each student received a diploma embedded with a QR code, enabling parents to easily open an Embark account, formerly known as the Oregon College Savings Plan. By depositing $25 into this account, the state will contribute an additional $100, providing a significant boost to their educational savings.
These accounts, also referred to as 529 Plans, offer tax-free growth as the treasury invests the funds. Contributions up to $380 annually can be deducted from state income taxes, and the funds can be used for various educational expenses, including apprenticeships and trade schools.
Statewide Impact
The ‘Kinder Grad’ program is part of a broader effort by the Oregon Treasury to increase participation in education savings plans. Historically, only one in eight Oregonians have utilized these plans. Steiner, elected in 2024, is determined to at least double this figure during her tenure. The treasury has already observed a significant increase in account openings, aided by statewide advertising campaigns and public events.
In addition to the ‘Kinder Grad’ initiative, the treasury offers a ‘Baby Grad’ program, providing a $100 deposit for accounts opened for children under one year old. Steiner emphasizes the importance of starting savings early, stating that having an account increases the likelihood of pursuing post-secondary education by seven times.
By instilling the value of education and savings from a young age, the ‘Kinder Grad’ program seeks to empower families and communities to invest in their children’s futures, reinforcing the belief that post-high school education is both attainable and important.
Original reporting: Salem Reporter — read the source article.
