College & Workforce Readiness

Colleges

May 02, 2001 2 min read
  • Save to favorites
  • Print

Spend and Save: A new company has launched a college-savings plan that promises to help families save money for their children’s future education when they buy new cars, enjoy dinner and a night out on the town, or make other purchases.

Upromise Inc., based in Brookline, Mass., announced the program at an April 24 news conference in New York City. Officials also provided a rundown of the companies that have agreed to participate in the endeavor, including big-name corporations such as AT&T, Borders Inc., Century 21 Real Estate Corp., Citibank, Coca-Cola, General Motors, and drug store chain CVS Corp.

The plan allows individuals to start a family-savings network that can include parents and two other family members. A percentage of dollars spent with Upromise partner companies will go into college-savings accounts.

For example, AT&T will contribute 4 percent of customers’ residential charges to their Upromise accounts. Seventy online retailers have agreed to kick in up to 12 percent of purchases made through Upromise. And Toys “R” Us Inc. will contribute 2 percent of purchases to the account. The participating companies also pay Upromise an undisclosed sum to join the program.

Parents also can have their money put into a guaranteed college-savings plan managed by Salomon Smith Barney or Fidelity Investments. According to a study commissioned by Upromise last fall, tuition at the average four-year college will more than double over the next two decades—to $15,879 from $7,472 in today’s dollars—if present economic trends continue.

Upromise, whose staff includes former U.S. Sen. Bill Bradley as an adviser and a board director, says that a family making $60,000 per year would be likely to save at least $20,000 over 15 years in the program.

Upromise CEO Michael Bronner, who dropped out of Boston College because he couldn’t afford the tuition, said he hopes to encourage families to start saving for college as early as possible.

“We’re trying to overcome this epidemic where people aren’t saving,” Mr. Bronner said, adding he wants “to create a movement where people start saving for college.”

Participating companies will be featuring Upromise in millions of mailers, bill inserts, and circulars, and in store displays at 45,000 locations nationwide.

A recent study by Washington-based Hart Research Associates found that 82 percent of parents believe that college is moving out of financial reach, and half of the surveyed parents with college-bound students had saved $1,000 or less for college.

—John Gehring

Related Tags:

A version of this article appeared in the May 02, 2001 edition of Education Week

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Student Well-Being Webinar
Attend to the Whole Child: Non-Academic Factors within MTSS
Learn strategies for proactively identifying and addressing non-academic barriers to student success within an MTSS framework.
Content provided by Renaissance
Classroom Technology K-12 Essentials Forum How to Teach Digital & Media Literacy in the Age of AI
Join this free event to dig into crucial questions about how to help students build a foundation of digital literacy.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

College & Workforce Readiness What the Research Says The State of Career and Technical Education, in Charts
New federal data shows more than 8 in 10 high school graduates completed at least one course in a career-education field in 2019.
2 min read
Young girl working on an electrical panel in a classroom setting.
iStock/Getty
College & Workforce Readiness Opinion Can Mastery-Based Learning Replace Seat Time?
Developing better assessments and getting buy-in from practitioners will be key to replacing seat time as a proxy for mastery.
6 min read
Image shows a multi-tailed arrow hitting the bullseye of a target.
DigitalVision Vectors/Getty
College & Workforce Readiness From Our Research Center Are Real-World Problem-Solving Skills Essential for Students?
Ensuring students' career readiness is a top priority for districts.
2 min read
Photograph of culturally diverse students and Black female teacher discussing mathematics problem at a whiteboard
E+
College & Workforce Readiness What’s More Important to Students and Employers: Skills or Credentials?
At the Reagan Institute Summit on Education, leaders discussed the evolving value of college degrees versus career skills.
4 min read
Reagan Institute Summit on Education panelists discuss career-connected education at the Ronald Reagan Presidential Foundation and Institute in Washington, D.C., on May 23, 2024.
Reagan Institute Summit on Education panelists discuss career-connected education at the Ronald Reagan Presidential Foundation and Institute in Washington, D.C., on May 23, 2024.
Annie Goldman/Education Week