Saving for Education, Entrepreneurship, and Downpayment (SEED) Policy and Practice Initiative is an American long-term savings and investment account policy and practice endeavor that develops, tests and impels matched savings accounts and financial education for children and youth. [1] The SEED accounts are installed at birth with an initial deposit of $1,000, and accumulates over the span of a lifetime. All the money will be invested in children’s savings accounts for future purposes. [2]
Established in 2003, the SEED initiative accrues deposits from family, friends, and accountholders themselves, as well as augmented by other public and private sources. Each voluntary contribution from any public or private sector should be invented by a public match that increases in value over time for lower-income families. [2]
Any SEED account policy should encompass the following specifications: [2]
By initially investing $1,000 for a child at birth with a 6% rate of return will yield a resulted investment of $3,000 after 18 years. Additionally, adding $100 per year onto the base will accrue up to $5,000. By adding $50 a month to the slated $1,000 base will return more than $22,000. [3]
The financial sum of $3,000 - $22,000 can be seen as a financial catalyst to fueling a child’s college education. Typically, costs to attend a 2-year college are just below $2,000 a year and a 4-year public colleges are just under $4,000 a year. [3]
Saving for Education, Entrepreneurship, and Downpayment (SEED) Policy and Practice Initiative is an American long-term savings and investment account policy and practice endeavor that develops, tests and impels matched savings accounts and financial education for children and youth. [1] The SEED accounts are installed at birth with an initial deposit of $1,000, and accumulates over the span of a lifetime. All the money will be invested in children’s savings accounts for future purposes. [2]
Established in 2003, the SEED initiative accrues deposits from family, friends, and accountholders themselves, as well as augmented by other public and private sources. Each voluntary contribution from any public or private sector should be invented by a public match that increases in value over time for lower-income families. [2]
Any SEED account policy should encompass the following specifications: [2]
By initially investing $1,000 for a child at birth with a 6% rate of return will yield a resulted investment of $3,000 after 18 years. Additionally, adding $100 per year onto the base will accrue up to $5,000. By adding $50 a month to the slated $1,000 base will return more than $22,000. [3]
The financial sum of $3,000 - $22,000 can be seen as a financial catalyst to fueling a child’s college education. Typically, costs to attend a 2-year college are just below $2,000 a year and a 4-year public colleges are just under $4,000 a year. [3]