Beginning this year, every kindergartner and middle school child in Hamilton County will receive a historic, groundbreaking investment. Just how big?
Big enough to shape generations.
Welcome to The Chattanooga Future Fund, a new pilot initiative that deposits $100 into a new savings account for Hamilton County School students to use for future college or career training.
“The Chattanooga Future Fund is an investment in hope,” said Keri Randolph, executive director of Chattanooga 2.0. “And thriving communities have hope. When our kids have hope, we’re a thriving community.”
The first of its kind in Tennessee and the Southeast, The Chattanooga Future Fund establishes a Career and College Savings Account (CCSA) for every kindergarten and middle school student in Hamilton County schools over the next five years. Similar to a traditional savings account, a CCSA allows money to be deposited into a student’s unique account then safeguarded at a market rate for future use: tuition, career training, books, equipment and more.
Led by Chattanooga 2.0, The Chattanooga Future Fund is a partnership between the Tennessee Department of the Treasury and Pinnacle Bank; there is no cost for activating an account nor will any family or student be charged during the life of the account.
“These accounts aren’t just for tuition,” Randolph said. “They have more flexibility around the actual costs of training and education beyond high school.”
The Chattanooga Future Fund will begin by depositing $100 into accounts for every kindergartener and middle schooler in Hamilton County with up to $150 in deposits. Students in eight high-poverty middle schools could earn an additional $275 in incentive-based deposits which can also be matched in $1500 from state funding. Incentives — financial literacy and career planning classes — will be offered for increased investments.
Just $5 added monthly to a kindergartener’s account would equal more than $1,500 upon high school graduation. Families can freely contribute at any point.
So can businesses and employers. And, as Randolph points out, basically anyone.
“We really do think business has a big role to play,” she said. “This is about individual kids and their dreams but also about the prosperity of our community and growing our workforce. This is an important platform, this idea of investing directly in a kid’s future.”
“I can’t overemphasize what we see in the research from other communities who’ve done this.”
Low-to-moderate income families with at least $500 saved for education are 3x more likely to attend college or trade school and 4x more likely to graduate or earn a credential.
Thankfully, while many grants and government-funded scholarships exist, research shows that many students often face extended barriers because of small, yet widespread, expenses.
Knowing The Chattanooga Future Fund realistically can’t match exorbitant tuition prices at many universities, Randolph mentioned research from Chattanooga State Community College which offers the ability to fund small requests from students.
“The average ask at Chattanooga State is around $300,” she said. “In other words, that’s the barrier between somebody continuing their education or dropping out.”
Randolph and other leaders began researching CCSAs in 2023, collecting data and leading focus groups while building out a pilot that will be the first of its kind in the Volunteer State. More than 100 similar programs exist in US cities.
“This is also the time as a country and community we’ve been wrestling with the value of college. This concept of a career and college savings account was really about building hope and the belief that they could attain those things,” said Randolph.
Early funding partners include Benwood Foundation, the City of Chattanooga, BlueCross BlueShield Foundation of Tennessee, Maclellan Foundation, Pinnacle Bank, Bobby Stone Foundation and Community Foundation of Greater Chattanooga.
First steps? Families claim and then activate their personal Future Fund account via a website link, then can receive an extra $25 for an initial $5 investment.
Starting with 4,000 students in the 2024-25 school year, the Chattanooga Future Fund’s goal is 38,500 students impacted within five years. Chattanooga 2.0 expects to see a significant increase in college and post-secondary acceptance, enrollment and future graduation beginning after the fifth year.
It’s estimated that students benefiting from The Chattanooga Future Fund could collectively earn an additional $750 million to $1 billion over their lifetimes.
“This program is an investment with an extraordinary upside for the entire community,” said Randolph. “The hope is that this initial $7.7 million investment leads to immeasurably big growth in years to come.”
Big enough to shape generations.
