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CNN Sunday Morning

Back-to-School: Finances and Child Safety

Aired August 26, 2001 - 07:20   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JEFF FLOCK, CNN ANCHOR: Summer vacation for most students is over. As they return to class, parents are focusing on two important issues: one is their children's safety, and the other is how to finance their education for many.

We have two reports this morning to help you out. We begin with Alexa Lee and details of educational savings accounts, and then Lilian Kim brings us up-to-date on school security.

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ALEXA LEE, CNN CORRESPONDENT (voice-over): New tax laws could help families like the Lustigs. They estimate when their youngest graduates from his private high school, they will have spent close to $100,000 for two kids.

BEVERLY LUSTIG, HIGH SCHOOL PARENT: You don't realize all the other fees involved in education today. And you know, on average, it's about $400 for books.

LEE: Under the new legislation, which goes into effect next year, those fees could be paid for through education savings accounts. The new accounts resemble education IRAs but more students can now benefit. And the contribution limit increased.

RENE KIM, CHARLES SCHWAB: The appeal has broadened because you can use it all through a child's life for the primary, secondary and their college expenses. It's just a lot more use of the account. And then on top of that, being able to contribute $2,000 instead of $500 a year just allows a person to actually accumulate the money much more quickly.

LEE: The contribution is not tax deductible but the earnings on the account grow tax-free. That money can be used for education related expenses, some qualifiers, computer equipment, even Internet access. The money can add up.

(on-camera): For example, let's say you put in $2,000, you wait one year. Assuming 10 percent growth, you'd have $2,200. That extra 200 could be used for qualifying software, even a printer.

(voice-over): The Lustigs are considered the account. Younger children stand to benefit more for long-term growth over time but almost any student in K through 12 or college can potentially see some benefit.

In San Jose, California, I'm Alexa Lee reporting.

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(BEGIN VIDEOTAPE)

LILIAN KIM, CNN CORRESPONDENT (voice-over): At the elementary school, 10 security cameras are mounted high, placed throughout the campus so school administrators can keep an eye for possible intruders.

MICHAEL SILVER, TUKWILA SCHOOL SUPERINTENDENT: There are cameras at banks. There are cameras in department stores. It's not unusual for us to come across a camera these days. So having them in schools is probably not that unusual anymore.

KIM: After a series of school shootings in recent years, security is now a major priority on campuses across the U.S.

MARILYN BROCKMAN, ARCHITECT: There wasn't a lot of conversation about are we sure this isn't -- can be a secure environment for students. Now, that's very much a topic of conversation that comes up at the beginning of a design process.

KIM: The recent campus addition, bullet-resistant glass and something most schools avoided the past, doors that can be locked from the inside.

UNIDENTIFIED MALE: So if you ran down a hallway and needed to lock somebody out of the room, you could run into classroom and turn the thumb turn.

KIM (on-camera): Another security measure schools are taking, phones in the classrooms for emergencies. But one of the advantages of this school's phone system is that when you pick up the phone to dial 911, the dispatcher will see not only the school's name and address but also which classroom the call is coming from.

(voice-over): By making these changes, school administrators hope to keep their campuses safe and help prevent another tragedy.

In Seattle, Lilian Kim reporting.

(END VIDEOTAPE)

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