 While sitting at the kitchen table one morning in 2004, the Walsh family
saw an ad in the newspaper announcing a contest, sponsored by Rhode
Island Treasury's CollegeBound program, asking students to draw a
picture about saving for college.
Mackenzie Walsh, who was in first grade at the time, asked
her parents how much college costs. Their reply was that the cost could be
hundreds of thousands of dollars. "That's a lot of dollars!" replied
Mackenzie. "I should draw a picture of a girl with a lot of
dollars", and so she did.
Her mom, Sharon, submitted the drawing Mackenzie won the
contest in the "5-9 year old" category and was awarded a $5,000
grant to her CollegeBound account.
"We always wanted Mackenzie to know from an early age
that we were planning and saving for her to go to college. We knew that
no matter where she went to college, it would be a lot of money",
said Sharon. "My husband and I and Mackenzie's grandparents contributed
to her CollegeBound account. We started early and increased the
amount we contributed gradually over the years."
This fall, thanks to her family's planning - and her
award-winning drawing skills, Mackenzie began her freshman year at North
Carolina's Elon University, where she is studying strategic
communications.
"During National College Savings Month, Mackenzie's
story is a great reminder of the importance of saving for college",
said Rhode Island General Treasurer Seth Magaziner. "Setting up, and
investing in, a college savings account helps nurture a child's educational
aspirations. Here in Rhode Island, our residents can open an account with
as little as a $1.00 investment".
CollegeBound Saver is a tax-advantaged
savings plan designed to encourage Rhode Islanders to affordably save for
college. As a "529 plan", investments and earnings can be used
at accredited colleges, universities, vocational school and trade schools
across the nation. Assets grow tax-free, and withdrawals for qualified
higher education expenses are also federal income-tax free.
CollegeBoundbaby is an enhancement of CollegeBound
Saver and is designed to help Rhode Island families get an early
start saving for their child's higher education. Every child born to or
adopted by Rhode Island families is eligible for a $100 CollegeBoundbaby
grant to be used for higher education.
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