(Washington, DC) – In recognition of National Financial Planning Month, the Office of the Deputy Mayor for Education (DME) is encouraging families across all eight wards to take advantage of free financial resources available to help build stability today and long-term savings for their children's future.

"A family's financial stability plays a big role in a student's ability to focus and succeed in the classroom," said Deputy Mayor for Education Paul Kihn. "National Financial Planning Month is the perfect moment to remind every DC family about the free tools available to build a stronger financial foundation for themselves and for their children's future."

Key Financial Resources 

New 530A Federal Children's Savings Accounts and $1,000 Federal Contribution

A new federal savings option, officially known as a 530A IRA, is now available for children under 18. Children born between January 1, 2025, and December 31, 2028, may receive a one-time $1,000 federal deposit. Families and others can contribute up to $5,000 per year per child, and eligible children born before 2025 may also be eligible for a $250 seed contribution through philanthropic support, based on where they live in the District.

During childhood, funds are invested in low-cost U.S. equity index funds or exchange-traded funds (ETFs) with capped fees, and the money is generally inaccessible until the child turns 18, at which point the account converts into a traditional IRA.

Any parent, legal guardian, or eligible adult family member can open an account by submitting Form 4547 through the IRS or the official federal enrollment platform. Only one account is permitted per child.

Employers can also contribute up to $2,500 per year toward an employee's child's account through a qualifying employer contribution program, and those contributions are excluded from the employee's taxable wages. Philanthropic foundations may also be able to contribute in the future.                                  

Families, employers, and foundations should go directly to the IRS or the official enrollment site for eligibility details, Form 4547, and to make the election. Please note that the District of Columbia does not manage or hold these accounts and that children must have a social security number before applying.

DC College Savings Plan (529)

The DC College Savings Plan is a tax-advantaged 529 plan that helps families save for a child's future education costs at any age. Funds can be used for college, university, graduate programs, and registered vocational or apprenticeship programs nationwide, as well as up to $20,000 per year in K-12 tuition. DC residents pay no enrollment fee and a low $15 annual maintenance fee, and DC taxpayers can deduct contributions from District taxes — up to $8,000 per year for joint filers and $4,000 for single filers.

Families can enroll online at dccollegesavings.com or call 1-800-987-4859 (DC residents) to request an enrollment packet. The minimum initial contribution is just $25.

Financially Fit DC

A free, personalized financial education platform, available in English and Spanish, that helps residents build a budget, manage credit, plan for a home purchase, save for retirement, and build long-term wealth. Get started at financiallyfitdc.com.

Bank on DC

Bank on DC connects unbanked and underbanked families to safe, low- or no-fee checking and savings accounts certified to meet national Bank On standards, often the right first step before opening a savings account for a child. In Fiscal Year 2025 alone, nearly 600 District residents opened a Bank on DC certified account. Families can find a participating bank or credit union at bankondc.org.

"National Financial Planning Month is a great time for families to think not just about the year ahead, but the years ahead," said Karima M. Woods, Commissioner of the Department of Insurance, Securities and Banking. "Whether it's opening a bank account, starting a college savings plan, or taking advantage of the new federal children's savings accounts, DC families have free tools and resources to help build long-term financial security for their children."

These resources are available to families citywide. For more information on these and other resources, visit disb.dc.gov.

College and Career Pathways Resources

Families planning further ahead can also apply to DC Tuition Assistance Grant (DCTAG), which helps DC residents cover the gap between in-state and out-of-state tuition at public colleges nationwide, as well as at Historically Black Colleges and Universities (HBCUs) and DC-area private schools. 

OSSE also connects students to additional scholarships and financial aid, including the Mayor's Scholars Undergraduate Program to help close remaining gaps. Students can also get a head start on college and career readiness through Career and Technical Education (CTE) and the Advanced Technical Centers (ATCs), which let high schoolers earn college credit and industry certifications before they graduate. More information is available at osse.dc.gov/page/college-and-career-resources-students-and-families.