The Washerwoman's Gift: How Oseola McCarty Turned Pennies into a $150,000 Legacy

A Quiet Life, A Monumental Gift

In 1995, the world was introduced to Oseola McCarty, an 87-year-old washerwoman from Hattiesburg, Mississippi. She had spent nearly her entire life scrubbing, washing, and ironing other people's clothes by hand. It was a life of hard work and modest means. Yet, she made headlines for an act of staggering generosity: she announced a donation of $150,000—her life savings—to the University of Southern Mississippi to fund scholarships for deserving students. The news left many wondering: how did a woman with such a humble profession accumulate such a remarkable fortune?

A Masterclass in Frugality

The secret to Oseola McCarty's wealth wasn't a hidden inheritance or a stroke of luck; it was a lifetime of disciplined and relentless saving. Her financial philosophy was born from necessity and ingrained in her from a young age. After leaving school in the sixth grade to care for her ailing aunt, she began working, saving every spare coin she could. Her method was simple but powerful: live on the absolute minimum and save the rest.

Her frugality was legendary. She never owned a car, walking everywhere she needed to go, pushing a shopping cart for miles to get groceries. She lived her entire life in the simple home her uncle had built for her, a home that lacked air conditioning despite the sweltering Mississippi heat. To save a few cents on the local newspaper, she waited until a friend was done with their copy. She would even cut bars of soap into smaller pieces to make them last longer. While many saw these as sacrifices, for Ms. McCarty, it was just her way of life. The money she saved was her security and, eventually, her legacy.

The Power of Compounding and Trust

Ms. McCarty didn't just hide her money under a mattress. She was a diligent saver who regularly took her earnings, sometimes bundled in a cloth, to her local bank. For decades, she deposited her money without a specific goal other than to save it. As her savings grew, bankers at Trustmark National Bank took notice and helped her make wise decisions. They guided her from simple savings accounts to higher-yield investments like certificates of deposit (CDs) and money-market funds. Over more than 75 years, the small, consistent deposits, combined with the power of compounding interest and prudent management, grew into a small fortune.

A Dream for Others

Having left school at a young age, Ms. McCarty always yearned for the education she never received. She saw the opportunities that a college degree could provide and wanted to give that chance to others, especially African American students who faced financial hardship. When she decided it was time to plan her estate, she knew exactly what she wanted to do with the money she had so carefully saved.

I want to help somebody's child go to college. I'm giving it to the Lord. The Lord will see that it is distributed right.

She chose the University of Southern Mississippi because it was local and she wanted to see the good her money could do in her own community. Her only condition was that the scholarship recipients be financially needy; she left the rest to the university.

A Legacy That Multiplied

Oseola McCarty's humble gift set off a chain reaction of generosity. Her story captured the nation's heart, and people from all walks of life were inspired. Donations poured into the university to support her fund, with over 600 people contributing hundreds of thousands of dollars to match her gift. She received countless awards, including the Presidential Citizens Medal from President Bill Clinton, and an honorary doctorate from the university she had so generously endowed. Despite the fame, she remained humble, living out her final years in the same simple home. Oseola McCarty passed away in 1999, but her legacy endures through the hundreds of students who have since attended college because a washerwoman with a generous heart decided to invest in their future.

Sources

• Wikipedia: Oseola McCarty
• The New York Times: Oseola McCarty, 91, Dies; Donated Scholarship Fund
• The University of Southern Mississippi: Oseola McCarty's Legacy