Cute idea. I assume that many families won’t add to it.
At 6% interest, that $100 will be worth $285 when the kids turns 18.
However, by adding $20 a month for 18 years, the account will be over $7700.
I don’t agree with the program nor do I believe all young people should go to college.
If the fund can be used for trade schools etc, it’s a good deal.
One of my kids decided to get his CDL and become a truck driver. His CDL class had a grant attached and it only cost him $1000. If we had a state fund that we input money to, would we then lose it if the child decided not to pursue college?
Another of my kids did an associates at Community college. Hers was almost free to her because of scholarships and credits for good grades.
One of my kids could have used it. He is a newly minted Astronautical Engineer. His income is high enough that he’ll have all his debts paid off in a year or so.
It’s pretty cool. He makes a great income, lives cheap, drives a pile of junk and is almost debt free.
Back in the 90s, in TX, the state offered a college fund which parents paid all on their own but the tuition costs were frozen at the date the account was opened. When your kids when to college, you only paid out of the account what college costs back when were rather than current costs. It worked great for us but they soon closed down new accounts because college tuition skyrocketed too high and too fast that the program failed. Thankfully, they kept their word by continuing the program for the original accounts.