New savings program for Maryland students aims to bridge racial wealth gap

MONTGOMERY COUNTY, Md. (7News) — This week, the Greater Washington Community Foundation launched a children’s savings pilot program to address the racial wealth gap.

The Brilliant Futures program will provide up to $1,000 a year every year from kindergarten through 12 grade for up to 400 students.

“By the time they are at graduation, they will be able to redeem this investment to be able to use to further their education, to use as a downpayment, a part of a down payment, on a house or a condo. They'll be able to use it for retirement savings to roll over into a qualified plan or for entrepreneurial purposes and interests,” said Tonia Wellons, the President and CEO of the Washington Community Foundation.

This program specifically impacts Maryland students at Bradbury Heights Elementary School in Prince George’s County and Jackson Road Elementary School in Montgomery County. Two consecutive years of kindergarteners will be a part of this program.

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“It's neighborhoods that have I would say low life expectancy, high poverty, low home ownership, and what we say is a high opportunity,” explained Wellonss. “These are high-opportunity neighborhoods for these kinds of investments to really made all the difference in the world.”

The foundation says the participant population is 90% Black, Latinx, and Hispanic with all students eligible for free and reduced meal service.

“Economic mobility was one of the best pathways to addressing poverty, to thinking about ways of moving families and young people from crisis to stability, from stability to mobility, and ultimately to a place of thriving and well-being,” said Wellons.

Wellons says research has shown with early investment, kids perform differently academically. Four out of five kids with savings accounts in their names are more likely to go to college than those without.

“We're trying to make the case, that kids, especially those in low-income communities, can really change a small amount, can really shift their entire trajectory and their perspectives about what's possible for them,” said Wellonss.

In total, the Brilliant Futures program will cost $10 million. The amount of funds raised will help determine how much students receive each year. You can donate here.