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Should NH fund children’s savings accounts?

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Rep. Mary Gile has requested a 2017 bill to fund a children’s savings account program in New Hampshire.

The details of that bill are not public, but Rep. Gile has been advocating for a savings account program for years.

Under a children’s savings account program, the state would give each kindergartener $50 in a savings account for the purpose of starting a college fund.  Similar programs exist in neighboring states.  Maine has the most generous program; each newborn is given $500 in a savings account.

In 2016 Rep. GIle was one of the sponsors of SB 408, which would have given $50,000 in state funds for a pilot program in Coos County and the city of Manchester.  The New Hampshire Charitable Foundation said they would match that state contribution.  The Senate tabled the bill.

Now Rep. Gile will seek funding again in 2017.

Supporters of a children’s savings account program point to statistics that show students with just $500 of savings are three times more likely to enroll in college.  Similar programs in other states have also increased how much parents are saving on their own.  

Opponents are concerned that there is no way to tell if children’s savings account programs work in the long-term, because the programs are still too new.  Some state Senators also opposed SB 408 because only kindergartners in Coos County and Manchester would benefit; they would rather start the program statewide.

Do you think New Hampshire should fund children’s savings accounts?  Let us know in the comments.

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