Illinois Asset Building Group - Building Financially Strong Families and Communities

Danielle

Graduate student Danielle Riley has personal experience with saving for the future. During her junior year of high school she was told by a school counselor about a program designed to help students save for college. The program offered Individual Development Accounts (IDAs) to students wishing to attend college. IDAs are matched savings accounts that assist individuals in building assets for a specified purpose, in this case educational expenses. Danielle signed up for the program and over the next two and a half years she was matched 4 to 1 for every dollar she saved.

When she enrolled at Loyola University in Chicago, Danielle found that her savings had paid off. “It really came in handy”, she said, “I would not have been able to make it through my first year without it.” That first year at Loyola, Danielle used part of her savings to offset tuition fees as well as cover the entire cost of books, and that wasn’t all her savings covered. “That money took me a long way”, said Danielle, “it seemed like it lasted forever, I closed the account out my senior year.”

In addition to the matched savings of her IDA, Danielle also benefited from the financial education she received. She feels this experience really impacted her. “It made me start thinking about saving, before then I wasn’t really in that mindset.”

Danielle feels lucky to have had assistance in saving for college. She believes all children should have a similar experience. “I think all kids should have a savings account”, said Danielle, “Parents get hit with a lot of bills. They may have it in their hearts to send their kids to college but for some people it is not always feasible”. Danielle knows that even a small savings can make all the difference. “My savings helped me to continue my education. A savings accounts might not be a million dollars but it will help kids in their dream of becoming successful.”

Meghan
Meghan is a marketing associate who volunteers as a tutor and mentor in her spare time. Through a program sponsored by a local non-profit, Meghan teaches writing workshops to children ages 6-18. She also serves as a mentor to a 13 year old girl in middle school. Meghan says she loves teaching and volunteering with children.

Having recently gone through college, Meghan is aware of the pressures of preparing for the future. She says that she often talks with the student she mentors about what she will do after high school and if she will go to college. “I don’t think she realized she could go to college,” said Meghan. “No one in her family had gone and she though it would be too much money.” Meghan knows that money and savings can play a big role in a college student’s life. She doesn’t feel that the children she works with have had much financial education. “I think that they just ask for money from their parents. They would never know what interest means.” This level of understanding is not far off from what Meghan experienced herself as a child. “I was in high school before I knew what a checking account was.”

Meghan believes that Children’s Savings Accounts opened at birth for every child in Illinois and paired with financial education would benefit future generations. “I think teaching kids about money and the economy would really help.” Meghan feels that CSAs would also give children something to look forward to. “While this might sound like a cliche, I think it has the potential to give people hope.”

Lauren
Lauren is a graduate student currently pursuing a master’s degree in social work. Entering her seventh year of college Lauren’s education has not been cheap. “I was lucky to have parents that began saving for my education when I was very young. My father was very adamant about discussing our savings accounts and college with my brother and I on a regular basis.”

Through her parent’s direction Lauren began to save on her own as well, “I worked every summer from the time I was 14 and put most of my earnings into my savings.” When it came time for her to graduate high school Lauren was prepared for the next chapter in her life. “There was never a question on whether or not I would go to college, I was not worried about the cost and I got into my first choice school.”

Lauren parent’s foresight on saving paid off and she graduated college debt free. “I don’t know what I would have done without my college savings, I may have gone to a two year college instead or chosen a different career. It is not easy to be a social worker and pay off loads of debt.” Two years ago Lauren decided to continue her education by entering graduate school. “I’m taking out some federal loans to help pay for grad school. I never would have gotten a master’s degree if I hadn’t had a college savings. Adding grad school debt to undergrad debt would have just been too much.”

When asked what she thinks about CSAs for all children born in Illinois Lauren says, “I think that it would give children the opportunity to become what they are most interested in and not just what their current situation dictates.” Lauren believes CSAs are a smart investment for Illinois, “I think Children’s Savings Accounts will produce a stronger workforce, more financially secure families and will ultimately strengthen our states economy.”