A new program that aims to invest $5,000 each on behalf of students in St. Louis city and county is looking for applicants.
On Our Block offers a twist on so-called “baby bonds” programs. Sponsored by the James S. McDonnell Foundation, Edward Jones, and Mobility Capital Finance Inc., the plan is to create a managed fund of $1.5 million. A total of 300 seventh graders in local public school districts will each have an account in the fund seeded with $5,000. Once participants graduate high school, they can use their portion to pay for higher education, purchase a home, start or buy a business, or open a retirement savings account. Think of them as a more flexible version of college savings accounts that affluent families often start for their children.
Get a fresh take on the day’s top news
Subscribe to the St. Louis Daily newsletter for a smart, succinct guide to local news from award-winning journalists Sarah Fenske and Ryan Krull.
“Baby bonds” were originally conceived as something bestowed at birth. “But because we want to learn what the impact of this is, and want to accelerate that impact, we’re starting at seventh grade,” James S. McDonnell Foundation president Jason Purnell told SLM in January. They hope to show a payoff in just six years, which would lay the groundwork for more investment.
Eddie Mungai, senior community engagement manager at MoCaFi, said it’s been “meaningful” to bring the program to life. “The On Our Block: STL Investment Program has a huge potential to narrow the wealth gap and improve economic outcomes for entire communities,” he said in a statement. “I hope that, with the success of our partnership and pilot program, other public and private actors looking to impact the lives of children and their families will invest in the junior bonds model as a tried-and-tested avenue for economic empowerment.”
To participate, a family’s gross household income must be at or below 80 percent of the 2024 area median income. That’s $66,050 for a family of two and $82,550 for a family of four. Students must have a valid social security number and be enrolled in one of the following school districts: Ferguson-Florissant, Hancock Place, Hazelwood, Normandy, St. Louis city, or University City.
On May 17, backers held an outreach event at Heydays HQ in Downtown West. They plan to keep applications open and continue hosting outreach events until all the program slots are filled. It is free to apply and participants will not be asked to make any financial contributions throughout the life of the program.
Learn more about the program in the backers’ Instagram Reel:
Editor’s Note: This story was changed after publication to more precisely explain the status of the seeded funds.
