LAKE COUNTY, CALIF. (September 15, 2022) – The State of California has made college more accessible for millions of children in the state with the launch of the California Kids Investment and Development Savings Program (CalKIDS).
Every eligible low-income public school student in grades 1-12 in California will have a CalKIDS account created in their name with an initial seed deposit ranging from $500 to $1,500.
This program is administered by the ScholarShare Investment Board, a California state agency that oversees ScholarShare 529, the State’s official 529 college savings plan.
“We are excited to partner with CalKIDS to inform our community about this wonderful opportunity,” said Brock Falkenberg, Lake County Superintendent of Schools. “We believe that every child in California should have better access to higher education. The CalKIDS program helps make that vision possible by providing families with the starting point to build assets. Studies show that children with $500 or less designated for college savings are three times more likely to enroll in college, and four times more likely to graduate than children with no savings.”
CalKIDS is the largest children’s savings account (CSA) program in the nation, serving an estimated 3.4 million low-income public school students currently in the State of California.
The funds in a CalKIDS account can grow tax-free and be used for future higher education expenses, such as tuition, books, and computers. When the student is ready to use their savings to pay for any qualified higher education expense, they can easily redeem their funds, including any earnings, from their CalKIDS account.
Money provided through the CalKIDS program can be used at eligible education institutions, including four-year colleges and universities, community colleges, technical schools, or accredited institutions.
CalKIDS participants and their families can also establish and contribute to individual ScholarShare 529 accounts, where they can contribute and start saving early.