California launches Cal Kids program to boost college savings

California's Cal Kids Program Offers College Savings Accounts for Newborns and Low-Income Students

The California State Treasurer's Office has announced that babies born in the state on or after July 1, 2022, may have a Cal Kids account waiting to be claimed, aimed at helping families save for college or career training. Additionally, eligible low-income public school students in grades 1 through 12 may have up to $1,500 saved for their future education.

Cal Kids is designed to encourage college attendance and completion, with research indicating that children with college savings accounts are significantly more likely to enroll in and graduate from college. The program is overseen by the Scholarship and Investment Board and aims to alleviate concerns surrounding misinformation about its legitimacy.

Families can determine eligibility through notification letters sent via mail, which include a unique Cal Kids code necessary for claiming the account. For those who may not have received a letter, an online eligibility tool is available at calkids.org, requiring only the child's statewide student identifier (SSID) to check eligibility.

All newborns in California born after the specified date are automatically enrolled in the program, with a one-time seed deposit of up to $175 provided by the state. This account remains with the child, even if they move out of California, and can be accessed when they are ready for higher education.

The program also incentivizes families to link their Cal Kids account with a 529 scholarship account, offering an additional $50 for those who do so. As the initiative continues to roll out, families are encouraged to learn more and claim their child's funds to support future educational endeavors.