Thousands of Los Angeles Unified School District (LAUSD) students will benefit from a new program that offers them a savings account with an initial deposit of $ 50 at Citibank Bank.
The OpportunityLA program, which is a partnership between the city, Los Angeles County, and LAUSD, will provide Savings to first grade students from 196 schools.
It is estimated that around 13, 000 First graders this spring will benefit and the program will extend into the fall semester.
This is very good news for various parents, such as María García, who has a 5-year-old son who will start the first grade in the fall in a school in the San Fernando Valley.
“It is a very good decision that the district made because it is important that children value money … not only of how not to earn it but also not to waste it, ”she said.
She added that she is the mother of five children. Of the four oldest, one goes to vocational school and the other three to high school, and it wasn’t until they were in their teens that she helped them open a savings account. However, he likes the idea that with his youngest son this help begins much earlier.
“The youngest does not have a savings account now,” said García. “Receiving this help from a very young age motivates us to have this financial education.”
The president of the Los Angeles City Council, Nury Martínez, said on Friday during the public announcement that this decision allows the next generation to have access to greater opportunities.
“A child with a savings of $ 499 he is three times more likely to go to college and four times more likely to graduate, “Martinez said at a press conference. “However, the 40% of the families do not even have $ 400 in his savings account to face an emergency, much less a university education. ”
He stressed that last year was the best example to show that not all children have the same resources and therefore lose learning opportunities.
He indicated that during virtual teaching, the difference was seen from the richest communities, whose students had tutors , learning modules and a stable internet service.
“Many of the communities I represent, along with the neighborhoods in this county, lacked the basic tools necessary to be successful, including computers, access to the Internet and mom and dad had to become teachers “, said Martínez.
He added that this program is the largest in the nation.
Saving for college is essential, but the reality d is that many of our families do not have the means to do so ”, he expressed.
How to participate in the program?
Opportunity LA is run by the City of Los Angeles Department of Housing + Community Investment (HCIDLA) that seeks to improve the lives of families living in Los Angeles by increasing their safety financially, developing financial capacity and improving educational outcomes.
To be eligible, students must be enrolled in first grade at a participating LAUSD school.
Parents will have the opportunity to opt out of the program by signing the opt-out form that LAUSD will provide.
Participating families can choose whether or not to continue contributing to the savings account but will suggests that they do so. Students will receive a welcome packet informing them of the program and will be provided an account number to use when making contributions to the savings account.
Savings accounts will be available to students regardless of age. income, history or immigration status of the student or parents. Students and families can also make additional deposits in person and online.
Funds do not affect benefits families receive such as WIC or CalFresh.
These are managed by the city of Los Angeles for the student and cannot be counted as part of household income.
Once you are a student in high school your savings from the OpportunityLA program can be used for expenses related to college readiness such as college application fees, ACT / SAT test fees or preparatory classes and enrichment services prior to enrollment.
May also be used for college expenses such as deposits for room and board on campus, education expenses for tuition, mandatory fees, books, and supplies.
Post-secondary education includes: community colleges, universities, trade schools, and any two-or-two programs. four years at accredited institutions.
To be eligible for use of a qualifying account, participant must be currently enrolled in or graduating from LAUSD high school.
Funding for this program comes from the California Student Aid Commission, former Los Angeles City Council Member David Ryu’s office, Mayor Eric Garcetti’s budget, and City Council President Martinez.
For more information and a list of eligible schools, visit www.opportunityla.com .