Newark introduces savings program for kindergarten students

In Newark, New Jersey, a bold step is reshaping the future of young learners. The Newark Saves College Savings Program, launched in August 2025, gives every kindergarten student a jumpstart on higher education. Thanks to a $150,000 grant from The Prudential Foundation, more than 3,000 students have been able to start 529 college savings accounts. Each account comes with a starter deposit and opportunities to grow through family involvement and academic achievements.

This initiative goes beyond money. It fosters a mindset that makes college seem achievable for all children, no matter their background. By promoting financial literacy early, Newark is investing not just in education but in long-term community mobility. With the Class of 2038 in focus, the city is preparing today’s kindergarteners for tomorrow’s success.

Background of the Program

The Newark Saves Program was launched in collaboration with Newark Public Schools, The Prudential Foundation, and the FOCUS Hispanic Center for Community Development. Its mission is simple: give families an early financial foundation for education.

Each child entering kindergarten in the 2025–2026 school year receives a $25 seed deposit to open a 529 account. Families can unlock more deposits through participation in financial literacy workshops and by celebrating milestones like perfect attendance or academic progress.

The bigger vision is to grow a college-going culture across Newark, ensuring that students from all income levels can dream beyond high school.

Goals and Objectives

The Newark Saves College Savings Program is built around four core objectives:

• Creating a Saving Habit: Encourage families to start saving early for their child’s education.
• Improving Financial Literacy: Provide parents with tools and knowledge to manage their money wisely.
• Breaking Down Financial Barriers: Reduce the challenges that often keep students from pursuing college.
• Strengthening Family Engagement: Involve parents through workshops and school-led activities that support their child’s future.

Together, these goals create a pathway where every child, no matter their financial situation, has a fair chance at higher education.

How the Program Works

The program operates with clear and simple steps that make it accessible for all families:

• Automatic Enrollment: All kindergarten students in Newark Public Schools are enrolled automatically.
• Starter Deposit: Each child receives a $25 deposit in a 529 college savings account managed by Equitable.
• Incentive Rewards: Families can earn an extra $25 deposit by joining financial literacy classes or when students hit milestones like perfect attendance.
• Workshops for Families: Parents get access to courses on budgeting, saving, and college planning.
• Ongoing Contributions: Families can track accounts and add personal contributions through the program’s online portal.

This structure makes the Savings Program more than just a financial tool; it’s an educational journey for both children and families.

Benefits for Children and Families

The Newark Saves initiative delivers several long-term benefits:

• Early Introduction to Saving: Children learn the value of money and the importance of future planning at a young age.
• Higher College Success Rates: Studies show that even small savings increase the likelihood of attending and completing college.
• Family Involvement: Parents become active partners in preparing their children for academic success.
• Reduced Financial Pressure: Savings built over time help reduce reliance on student loans.

By instilling financial discipline early, the program not only supports education but also strengthens family stability and community growth.

Challenges and Considerations

Like any new program, Newark Saves faces a few challenges:

• Sustaining Engagement: Families must stay active in workshops and savings activities.
• Access Gaps: Some households may face barriers due to limited internet or digital tools.
• Funding Continuity: Long-term success depends on consistent funding and community partnerships.

Overcoming these challenges will be critical to making Newark Saves a lasting model for financial empowerment.

Broader Implications and Future Outlook

The Newark Saves Program is part of a broader national effort that encourages early college savings and strengthens financial literacy. Cities across the U.S. are experimenting with similar models, and results show real promise in boosting college enrollment and completion rates.

Looking ahead, Newark plans to expand the initiative, bringing in more students and offering stronger family support services. If successful, it could serve as a replicable model for other districts, helping shape a generation that’s financially prepared for education and beyond.

Conclusion

The Newark Saves College Savings Program is more than a financial plan; it’s a commitment to the future. By giving kindergarteners a head start, the program not only plants the seeds of saving but also builds a culture of learning, planning, and hope. As we look toward the Class of 2038, Newark’s example proves one thing: when communities invest in children today, they secure a stronger tomorrow for all.

Disclaimer:

This content is for informational purposes only and is not financial advice. Always conduct your research.