College has become a generational privilege. If your parents went to college there is about a 99% chance you went to college and a 99% chance that your kids will go to college (percentages based on… observation). But what about parents who didn’t go to college and who live at or near the poverty line? Their ability to save for their child’s future is limited at best. This week on The Pete the Planner Radio Show I spoke to Max Yoder one of the founders of The First Fund about his start up and what he’s doing to help disadvantaged kids go to college. Listen below to the clip courtesy of 93 WIBC.
I love meeting cool people doing cool things, especially when it involves helping others. Max and his business partners have created The First Fund to help first graders prepare for college, how cool is that? This is how it works: First grade teachers nominate a first grade student that shows educational promise and comes from a family that cannot afford to set enough money aside for a college education. Once the student is selected, the The First Fund sets up a 529 savings plan with a $1,000 starting balance. From there, Max and his partners will continue to educate and support the family and student for the next 11 years as they add to the fund and prepare for higher education. One of the most discouraging things for families trying to save for college is the insignificant amounts they are able to put toward college. $15 here, $20 there, can seem puny when the cost of college is so high. Max hopes that with the initial $1,000 investment and educating the parents about compound interest rates, parents will no longer be discouraged by their small contributions to the fund. For more information and to donate, go to thefirstfund.org.
Peter Dunn a.k.a. Pete the Planner® is an award-winning financial mind and a former comedian. He’s a USA TODAY columnist, author of ten books, and is the host of the popular radio show and podcast, The Pete the Planner Show. Pete is considered one of the foremost experts on financial wellness in the world, but he’s just as likely to talk your ear off about bass fishing.