Fabian Hernandez brings all the money he's saved to deposit in his SEED Account at Compass Bank.

 

Good money management habits start early in life. In 2003, Foundation Communities became part of a national pilot initiative called SEED (Saving for Education, Entrepreneurship, and Downpayment) to develop and test a matched savings and financial education system for children.

Foundation Communities selected 75 children, ages 6 to 10 and residents of our properties, to participate in this unique program. The children opened a special savings account at Compass Bank, where an initial deposit of $500 was made for every participant.

Children emptied their piggy banks, searched for spare change, collected and resold magazines, asked family for college savings deposits instead of toys for gifts and saved their money instead of spending it on unnecessary items. Most children saved about $12-15 a month. The program taught children about budgeting, needs vs. wants, credit, saving and long-term investing.

The SEED Initiative drew to a close at the end of 2007 with most of the children investing their savings in the Texas College Savings Plan. SEED participants together saved about $43,000, and after matching funds, almost $80,000. The children now share the confidence of having a nest egg to help them reach college and their future goals.

For more information about the SEED program or children's savings accounts, please contact:

Julian Huerta
Director of Programs
512-447-2026 x13
julian.huerta[at]foundcom.org (replace [at] with @)

 


SEED Deposit Day at Compass Bank.

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Just a few years ago, Laura Velasquez was struggling with how to support herself and two children on her own. “My husband always made the bulk of the money,” Laura said. “When I got divorced, I was really down and out.”

But after she began saving in the Individual Development Account program, she took charge of her future. Laura opened two accounts – one to buy a house and one to attend college. After just two years living at Trails in the Park, she saved enough to buy a home and pay for school. She recently earned her B.A. in business management while working full-time. Her next move is to go for her master’s degree in public administration. “All of this was possible because FC took the time and money to invest in my family and me,” Laura says. “Words cannot express how thankful I am for this program.”