CalKIDS: a College Savings Account for Low-income Kids
All kids deserve the chance at a college education but not all kids or their families have the resources to make that dream a reality. That changed when California launched the nation’s largest college savings program called CalKids. The program established college savings accounts for all families of low-income public school students with seed funding from the state to the tune of $500 and $1,500. There are an estimated 3.4 million students across the state who will benefit from this innovative program. The state invested $1.9billion into the accounts for children grades 1-12 and for newborn children born on or after July 1, 2022.
How will it work? The following is from a press release from the Governor’s office:
Up to $1,500 for 3.4 Million School-Age Children:
$500 Automatic Deposit: Eligible low-income public school students in grades 1-12.
$500 Additional Deposit: Eligible low-income public school students in grades 1-12 identified as foster youth.
$500 Additional Deposit: Eligible low-income public school students in grades 1-12 identified as homeless.
Up to $100 for Newborn Children:
$25 Automatic Deposit: Every eligible child born on or after July 1, 2022.
$25 Additional Deposit: Those who register on the program’s online portal.
$50 Additional Deposit: Those who link a new or existing ScholarShare 529 account to the CalKIDS account.
This scale of innovation will make a true impact in the lives of millions of students who wouldn’t otherwise have the means to pursue a college education. Though it doesn’t fund the full cost of college, it’s a valuable resource that didn’t otherwise exist.
Photo credit: California Governor’s Office