California has launched the CalKIDS Program, which will give 3.4 million students across the state access to college saving accounts with seed investments ranging from $500 to $1500.
CalKIDS, or California Kids Investment and Development Savings Program, invests $1.9 billion into accounts for low-income students in grades 1-12 as well for all newborn children born on or after July 1, 2022.
The accounts will be accessible to the families of all participants and will be created in their children’s names.
“California is telling our students that we believe they’re college material – not only do we believe it, we’ll invest in them directly,” said Governor Gavin Newsom. “With up to $1,500, we’re transforming lives, generating college-going mindsets, and creating generational wealth for millions of Californians”
An automatic $500 deposit will be given to all eligible low-income public school students in grades 1-12. Additional deposits of $500 will be given to those students who are foster youth, homeless, or both, adding to the maximum of $1500
New children will be eligible for up to $100, with an automatic $25 deposit for every eligible child born after July 1, 2022. Additional deposits of $25 will be granted for those who register on CalKIDS’s online portal, as well as $50 for those who link a new or existing Scholarshare 529 account to the CalKIDS account.
“My goal with this program was to bridge the gap between wealth inequality and the high cost of education,” Assemblymember Adrin Nazarian said. “Our shared vision ensures each child across the state will have an opportunity at higher education.”
In the following months, CalKIDS will send notification letters to qualifying children and families with more information. Accounts can be accessed via the portal now.
To learn more about the program and if your child is eligible, click here
By Brandon Nakao