Wealth Builds College Savings Accounts FAQ

What are Wealth Builds College Savings Accounts (CSAs)?

Wealth Builds CSAs are college savings accounts for our scholars that start with a $500 deposit from HCZ. Families have the opportunity to earn additional contributions and investment growth over time (see below for more information on earning additional contributions).

How can scholars use funds from Wealth Builds CSAs?

Funds from a Wealth Builds CSA can be used to finance tuition and fees at: 

• Two- and four-year colleges
• Post-secondary trade and vocational schools
• Post-graduate programs
• Registered and certified apprenticeship programs

Funds can also be used to pay for:

• Books, supplies, and equipment required for aforementioned schools and programs
• Computer equipment, software, internet access, and related services
• Certain room and board expenses during academic periods in which the beneficiary is enrolled at least half-time
• Certain expenses for students with special needs

Funds from a Wealth Builds CSA cannot be used for any K-12 expenses, including those that qualify under 529 plan federal law.

Where are Wealth Builds CSA funds invested?

Wealth Builds CSA funds are invested in a Target Enrollment Portfolio with Vanguard & Ascensus. Funds in Wealth Builds CSAs are initially directed into more aggressive investments, before being gradually shifted to lower-risk investments as scholars get closer to enrollment in college or other qualified programs. This strategy aims to maximize earnings over the long term and then protect, or “de-risk,” earnings as scholars prepare to withdraw funds to use for eligible expenses.

If HCZ only invests $500 in Wealth Builds CSAs, how can this help pay for college?

Funds from Wealth Builds CSAs are invested in a portfolio that can grow over time. This means that $500 can grow into thousands of dollars depending on market growth. Even if the $500 doesn’t grow, which is extremely unlikely, studies show that children with a CSA are more likely to graduate from college than children who do not have any savings at all. Funds from a CSA, however minimal, can help pay for important expenses such as books, transportation, room, and board.

Will additional funds be added to a scholar’s Wealth Builds CSA?

Families will have opportunities to earn additional contributions to their Wealth Builds CSA beyond the initial $500 contribution through incentives and meeting milestones. These include:

• $25 for claiming their scholar’s Wealth Builds CSA on the program portal
• $25 for opening a family-owned CSA account with the NY 529 Direct Plan, and linking that to a scholar’s Wealth Builds CSA (see more about opening this account in the “Family-Owned CSAs” section)
• A 2-to-1 match from HCZ on contributions into a family-owned NY 529 Direct Plan (up to $300 annually per scholar)

Can families contribute funds to their scholar’s Wealth Builds CSA?

No, families cannot contribute funds to their scholar’s Wealth Builds CSA. However, you can open and make contributions into a NY 529 Direct Plan. Once opened, this account can be linked to and viewed on the Wealth Builds CSA Portal. Please login to the portal or speak to Wealth Builds CSA staff for more details and assistance in opening and linking an account.

When can a scholar spend Wealth Builds CSA funds? 

Scholars can withdraw funds from their Wealth Builds CSA after they graduate from high school and when they enroll in college or other form of post-secondary education.

How long does a scholar have to spend the funds in their Wealth Builds CSA?

Scholars can withdraw funds from their Wealth Builds CSA after they complete high school, and they must withdraw funds on or before their 26th birthday.

Who is eligible for Wealth Builds CSAs?

Scholars from birth through eighth grade participating in the following HCZ programs:

• The Baby College (graduates)
• The Baby College G.R.A.D.S Early Head Start
• Three-Year-Old Journey 
• Harlem Gems
• Peacemakers 
• A Cut Above
• HCZ Promise Academy Charter Schools (grades K-8)

HCZ will automatically set up a Wealth Builds CSA for a scholar unless their parent or legal guardian chooses to opt-out of the program. 

Does immigration status affect a scholar’s ability to receive a Wealth Builds CSA?

No, all eligible scholars will receive a Wealth Builds CSA regardless of immigration status. Families do not need to provide a Social Security Number or Individual Taxpayer Identification Number for their scholar to receive a Wealth Builds CSA.  

Please note that a Social Security Number or Individual Taxpayer Identification Number is required to open a family-owned 529 account – please see below.

Does a Wealth Builds CSA impact benefits or public assistance?

No, because HCZ owns and manages the CSAs, and scholars are the beneficiary of the accounts, funds in Wealth Builds CSAs will not impact programs like SNAP, SSI, and other public assistance. Families/guardians do not need to report their scholar’s Wealth Builds CSA on their taxes.

Will the money in a scholar’s Wealth Builds CSA affect their financial aid?

Because HCZ owns and manages Wealth Builds CSAs, and scholars are the beneficiary of the accounts, having a Wealth Builds CSA does not impact a scholar’s eligibility for financial aid while the money is in the account. HCZ will provide more information in future years about the impact, if any, that Wealth Builds CSAs may have on financial aid eligibility once money in the account is used.

What happens to a scholar’s Wealth Builds CSA if they withdraw from HCZ programs or move out of Harlem?

If a scholar withdraws from HCZ programs, their Wealth Builds CSA will remain active and the scholar can retain funds already accrued from the investment (e.g., initial deposit, incentives, and matching funds). However, scholars are not eligible to receive any future funds or incentives while they are not enrolled in HCZ programs. If a family moves out of Harlem, they should update their address in the Wealth Builds CSA Portal or email WBCSA@hcz.org to notify the program staff.

What happens if a scholar doesn’t go to college?

If a scholar doesn’t go to college, they can use Wealth Builds CSA funds to finance other kinds of post-secondary education, including community colleges and vocational and technical training programs. If a scholar does not use their funds for post-secondary education, the money will be reallocated by HCZ to open Wealth Builds CSAs for other scholars.

What is the Wealth Builds CSA Portal?

Wealth Builds CSA Portal is a secure site where families can track deposited funds in the CSA and see how they have grown over time. Please note that since the funds are investments, the value of the account can go up and down depending on market conditions.

Importantly, if a family opens their own NY 529 Direct Plan, they can link this account to the Wealth Builds CSA Portal to see the value of both investment accounts in one place. In addition, if families have multiple scholars with a Wealth Builds CSA, you can view all of their accounts in the Portal with one login.

How do I access the Wealth Builds CSA Portal?

Wealth Builds CSA Portal can be accessed here. 

How do I claim my scholar’s Wealth Builds CSA?

You will receive an email with a link to set up an account with a username (email address) and password. If you did not receive the email, please reach out to wbcsa@hcz.org. 

How do families open their own CSA?

Families can open their own CSA, known as a NY 529 Direct Plan, separate from their scholar’s Wealth Builds CSA. Once opened, this account can be linked to and viewed on the Wealth Builds CSA Portal. For more details and assistance in opening and linking an account, log in to the Wealth Builds CSA Portal or contact a member of the Wealth Builds CSA program staff at wbcsa@hcz.org.

For more information about the benefits and uses of a NY 529 Direct Plan, visit www.nysaves.org.

If a scholar has a disability, will they lose their disability benefits if their family opens and saves money in a NY 529 Direct Plan for them?

If a scholar has a disability, HCZ recommends opening a NY ABLE Savings Account for them instead. For more information, visit the NY ABLE website. For questions, contact WBCSA@hcz.org.

Do families need a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) to open a NY 529 Direct Plan for their scholar?

Yes, the NY 529 Direct Plan and the NY ABLE plan do require either a SSN or an ITIN. In addition, the person who opens the account must meet the IRS definition of U.S. citizen or resident alien with a verified U.S. address. 

Does a family-owned NY 529 Direct Plan affect a family’s eligibility for public assistance?

Most public benefits are not affected. However, for details about specific public benefits, view The Save for College Program and Public Benefits guide created by NYC Kids Rise. 

How does a family-owned NY 529 Direct Plan affect a scholar’s financial aid? 

If a family saves money in their own CSA, this may impact their scholar’s financial aid package. Typically, the impact on financial aid is very minor. However, the impact will ultimately depend on the account chosen, income, financial aid rules at the time, and other factors. For more information, view The Save for College Program and Public Benefits guide created by NYC Kids Rise.