Treasurer Stacy Garrity announced that families who have registered their child’s Keystone Scholars accounts have saved more than $50 million for their children’s future education in linked PA 529 College and Career Savings Program accounts.
“Keystone Scholars is a catalyst to help families start saving as early as possible for their child’s postsecondary education – and this $50 million contribution milestone shows the program is working wonders for our youngest Pennsylvanians,” Garrity said. “The initial $100 Keystone Scholars deposit grows alongside a child until they’re ready to follow their career or education journey, and I’m so excited to see families making a commitment to save early for their child’s future education by opening their own PA 529 accounts.”
Keystone Scholars provides a $100 investment for every child born to a Pennsylvania family on or after January 1, 2019, including those adopted. The program uses no taxpayer money, and the funds are invested by Treasury. Accounts can be used after a child’s 18th birthday to help pay for a wide variety of technical, collegiate and apprenticeship expenses. There are currently more than 480,000 funded Keystone Scholars accounts.
Keystone Scholars is the first legislated, universal, automatic, at-birth program of its kind, and is a national model for Child Development Accounts (CDAs). CDAs have been shown to have multiple positive outcomes, including increased parental expectations for children’s educational future and improved social and emotional development for children. Research shows that children with even a modest amount of savings for education are three times more likely to attend a two- or four-year postsecondary institution, and four times more likely to graduate.
The implementation of Keystone Scholars has helped increase PA 529 account ownership statewide, including growth among low-income families and families in rural communities.
“I encourage any new or expectant parent to visit pa529.com/keystone to register or pre-register their Keystone Scholars accounts and learn more about the power of saving with our PA 529 program,” Garrity said. “It’s never too early, or too late to start saving for your child’s future, and once Keystone Scholars and PA 529 accounts are linked, families will see both balances grow side-by-side.”