(Reported by 401k Specialist.)
EvoShare, a micro savings-oriented FinTech startup based in Berkeley, California, and SavvyFi, a tech-driven 529 employee benefit platform headquartered in Franklin, Tennessee, announced a partnership in early April to make saving for college, and paying off student loans an automatic daily habit.
EvoShare’s proprietary system turns a percentage of every dollar spent at over 10,000 partnered local and online businesses, and 700,000-plus hotels worldwide, into additional contributions for financial accounts, including 529 education savings plans.
SavvyFi has simplified the signup process for 529 Plans and student loan repayment plans so any family can quickly start saving for the future, while enjoying unique features like gifting & cashback.
“SavvyFi has already made it easy for the whole family to get involved in adding to a 529 or paying off student loans,” Eugeny Prudchyenko, CEO of EvoShare, said in a statement. “Our contribution is giving the whole family extra money from their daily shopping in the form of cashback. Now all the things that parents or grandparents are buying for the kids can also help fund their education.”
“Adding EvoShare’s cashback rewards program to SavvyFi’s platform gives families another opportunity to increase their savings without coming out of pocket,” Jeffrey Hull, CEO of SavvyFi, added. “This also allows employers to provide a much-needed and valuable benefit without requiring the extra cost of matching contributions.”
Given the current financial climate, parents are concerned about being able to save for their children’s education, the companies noted, and recent grads will continue to struggle to pay off their student loans.
SavvyFi solved the problem of figuring out what kind of account to open, which investments to choose, and how to get started. With the addition of EvoShare, they claim to have solved the last challenge—how to find money to contribute to a 529 account.
“This partnership is going to usher in an entirely new way to automatically save for college or pay down student debt whenever family members shop, dine or travel—without any impact on the family’s budget,” they said.