As your state treasurer, I am entrusted with managing our state’s financial resources. My personal goal is to help Tennesseans achieve financial wellness in their own lives. The key to improving the financial outlook of Tennesseans begins with getting young people on the path to post-secondary education to qualify them to enter today’s workplace. That path begins with college savings.
Tennessee launched the TNStars College Savings 529 Program because the future of our state depends on us having a well-educated workforce. With a range of low-cost, high-quality investment options, the program allows Tennessee families to save and invest for the future cost of higher education in a tax-advantaged way. Money saved in a TNStars account can be used at in-state or out-of- state four-year universities, private colleges, community colleges, and technical schools.
We are proud to have assisted families in saving more than $400 million through TNStars. Establishing a college savings account for a child sends a powerful message that we believe in their potential. This is why I'm proud to support the Chattanooga Future Fund, an initiative that embodies our state's commitment to investing in our children's future and our economy.
Starting this year, every kindergarten and middle school student in Hamilton County Schools will receive $150 in a career and college savings account provided by the Chattanooga Future Fund. This initiative is the first in the Southeast and is a testament to Chattanooga's visionary leadership and commitment to its youth.
Families of students participating in the Chattanooga Future Fund will have the ability to link their Future Fund savings to a TNStars College Savings account to continue adding to their savings. Additionally, some income eligible Chattanooga families may qualify to receive four-to-one matching grants through the Tennessee Investments Preparing Scholars program. When a qualifying family establishes a TNStars account and enrolls a child 14 years or younger in the TIPS program, the state will provide a four-to-one matching contribution. Eligible children can receive up to $500 per year with a lifetime maximum match of $1,500.
Every dollar saved for a child’s future can advance them throughout their lives. Years of data prove that when children get help saving at a young age, they tend to save more money and build wealth at greater rates throughout their lifetimes. The Chattanooga Future Fund and the TIPS program will amplify individual families’ savings efforts, turning modest savings into substantial opportunities.
Even a few hundred dollars in a graduating senior’s account will make him or her up to five times more likely to pursue a post-secondary education or certification. This is vitally important in Tennessee, where in just five years more than 80 percent of jobs in Chattanooga will require a post-secondary credential. Currently, only 60 percent of local high school graduates are enrolling in any education or training after high school. The Chattanooga Future Fund can help close this gap and launch our workforce forward.
I commend Chattanooga 2.0 and its partners for their leadership on this groundbreaking initiative. The Tennessee Department of Treasury is proud to support these efforts. I encourage you to visit ChattanoogaFutureFund.org to learn how you can join us.
Together, we can ensure Tennessee children get the bright start they need, paving the way for the thriving futures they deserve.
David H. Lillard, Jr.
Treasurer for the State of Tennessee