This legislation would:

 Allow schools and school districts to develop partnerships with local financial institutions,

non-profit organizations, and/or philanthropic institutions to open and manage optional 

savings accounts for students and include them as part of the financial education curriculum.

 Provide a choice of savings products for schools to distribute through the program – either a 

college savings product or a general youth savings account.

 Extend existing exemptions for assets in Texas’ 529 plan accounts to college savings accounts 

distributed through this program, including the protection that assets in these savings 

accounts will not affect eligibility for Texas need-based financial aid. 

 Rely on private sector management and funding instead of state funds.

Proposed Legislation to Expand College Savings In Texas: 

A Down Payment on Our Kids’ Futures

This legislation would expand college savings in Texas by allowing school districts to 

develop partnerships with financial institutions to open and manage college savings 

accounts for students and their families.

Saving for college at an early age is 

the best strategy to build savings. 

However, many families start late or 

do not save at all.

As higher education costs continue 

to rise, more students and families 

go into debt to attend college or 

delay attending. 

More college debt means that young 

adults are less likely to invest in 

other assets like a home or business. 

More jobs in Texas require higher 

education degrees and our students 

need to be able to compete for jobs.

Students build saving and money 

management skills, which have 

positive effects on their future 

financial security and our economy.

Parents and students are empowered 

to save and plan for the future 

together. 

Research has found that students 

with as little as $500 in savings are 3x 

more likely to go to college.1

This initiative encourages 

postsecondary attendance and 

contributes to building a highly skilled 

workforce in Texas.

Why Do We Need This Program? What Are The Benefits?
For questions, please contact Laura Rosen, OpportunityTexas Coordinator & Policy Analyst 

Center for Public Policy Priorities e. rosen@cppp.org | p. 512.823.2868

Long Term Financial Advantages for Students

When young people have a savings account, they are more likely to continue saving in the future. One study 

found that students with a savings account seven years later were two times more likely to have a savings 

account and four times more likely to own stocks.3

Related Data and Resources

1

Assets and Education Initiative. (2013). Building Expectations, Delivering Results: Asset-Based Financial Aid and the Future of Higher 

Education. In W. Elliott (Ed.), Biannual report on the assets and education field. Lawrence, KS: Assets and Education Initiative (AEDI). 

http://save4ed.com/wp-content/uploads/2013/07/Biannual-Report_Building-Expectations-071013.pdf.

2

Assessing Financial Capability Outcomes Youth Pilot, http://opportunitytexas.org/about-us/current-initiatives/smarter-texans-save.

3

Friedline, T., & Elliott, W. (2013). Connections with banking institutions and diverse asset portfolios in young adulthood: Children as potential

future investors. Children and Youth Services Review, 35(6), 994-1006.

Soaring College Costs 

Lead to High Levels of 

Student Debt

According to a recent report from 

the Texas Comptroller, “student 

loan debt has increased at a faster 

rate than inflation. Between 2004 

and 2012, the average Texas 

student debt balance grew by 61 

percent. Inflation increased by 

only 22 percent.”

Successful Pilot in Amarillo, Texas Demonstrates Need for Statewide Initiative

During the 2012-13 school year, OpportunityTexas (a joint initiative of the Center for Public Policy Priorities and

RAISE Texas), along with a few national partners and support from the U.S. Treasury Department, conducted the

Assessing Financial Capability Outcomes (AFCO) youth pilot in elementary schools in the Amarillo Independent

School District in partnership with Happy State Bank. This pilot enabled a test of a program similar to the one

proposed in this legislation - combining Texas’ financial education curriculum with school-based savings

accounts. 

The pilot found:

 Both the financial education and savings accounts improved students’ attitudes toward saving and about

financial institutions.

 Students were more likely to open a savings account if they received financial education.

 Thirty-eight percent of students in the Amarillo pilot opened a savings account, with no difference in

student account enrollment between schools with more and fewer economically disadvantaged

students.

 Nearly all teachers in the Amarillo pilot thought the program was beneficial, reporting that offering

savings accounts in conjunction with the curriculum brought what students were learning to life.