Empowering Financial Futures Through the St. Louis Junior Bonds Program
Ricky Hughes of The Scholarship Foundation of St. Louis interacting with students at a program.
Baby bonds — publicly funded trust accounts established at birth that build wealth for a child to access when they become an adult — have gained traction in the national conversation over the last several years. More than a dozen states have proposed or passed legislation related to baby bonds, while children born between 2025 and 2028 are now eligible for funded 530A savings accounts established through a federal pilot program.
But what if there were a way to accelerate the timeline, helping youth build financial security in the short-term? The St. Louis Junior Bonds program aims to do just that for 276 local students from families with low-to-moderate incomes.
With a $1.5 million initial investment from the James S. McDonnell Foundation, professional fund management by Edward Jones, and administration by The Scholarship Foundation of St. Louis, the program establishes a local model for wealth-building. The initial share of approximately $5,000 per student is intended to grow over time, and participants will be able to withdraw their portion when they turn 18.
Earlier this year, Ricky Hughes, a student advisor and partner program manager with The Scholarship Foundation of St. Louis, was tasked with increasing the number of applications for the program.
“Folks were thinking it was too good to be true,” Hughes said. “There’s a lack of trust in the community, so I did my due diligence because I didn’t want to leave any stone unturned.”
Fortunately, The Scholarship Foundation of St. Louis’s century-long history of providing access to higher education, along with Hughes’s own background in education and position as a trusted face in the community, made the process smoother.
“We’ve been around for over 100 years,” Hughes said of the foundation. “And we have been able to build organic, authentic relationships with schools and community partners. I think that positioned us — and also me, as well — to connect the dots about this amazing program.”
Families need to earn within 80% of the St. Louis region’s median income and reside in one of nine school districts, including the City of St. Louis, to be eligible for the program. Hughes visited every middle school in all nine school districts and spoke at events ranging from graduations to game nights to share about the opportunity.
“I did it all because I believe in the program so much, because I knew the power of it, but I also knew what young eighth grade Ricky would have been able to accomplish if he was connected to this program,” Hughes said. “That was my driving force to make sure that I was getting the word out as much as I can.”
I’ve never come across a program that I feel could have the generational impact such as St. Louis Junior Bonds.
— Ricky Hughes
Individual portions of the fund can go toward higher education, buying a home, starting a business, or saving for retirement. Crucially, participants will have access to free financial education through the online platform MoneyByrd — and Hughes hopes that this information will also be valuable for their parents, siblings, and other family members.
“These students are going to learn how to invest and buy a home in the ninth grade,” Hughes said. “Not only are they going to learn these super impactful skills and resources, but so are their families. … I think that’s super powerful.”
Students will also be connected to expert partners for online and in-person workshops in each area that their funds can be used for at the end of the program. The Scholarship Foundation of St. Louis will provide information on the higher education track, while Edward Jones will support retirement savings, the Small Business Empowerment Center will educate on entrepreneurship, and St. Louis Community Credit Union will advise on home purchases.
The educational resource component also sets the program apart from policies aimed at younger children.
“We’re not just giving the students money [and saying,] ‘Wish you luck!’ We’re connecting them with partners and resources to help them manage the money and decide in a strategic way how to use those funds,” Hughes said. “That’s something that you can’t really do with a baby.”
Ultimately, Hughes thinks of the program as both an important investment tool and a community hope-builder.
“I’ve been in education for over a decade and I’ve never come across a program that I feel could have the generational impact such as St. Louis Junior Bonds.”