California lawmakers are planning to open a college savings account for every kid in California under a new taxpayer-funded scholarship program called CalKIDS. According to Gov. Gavin Newsom, almost 3.4 million kids will now have a college savings account. This is such an amazing program and I wish something like this was set up when I was younger!
Kids born on or after July 1, 2022 or eligible low-income public school students in grades 1-12 can receive the benefits from this CalKIDS Program. When a child is born, they'll receive up to $100 into their new savings account. Although the money being put into the savings account will be owned by the state and invested by professionals, parents will be able to keep track of their kids growing account; they just won't be able to withdrawal any money from it.
Once the child graduates from high school, the money from the savings account will get sent directly to the school of their choice. Below is what eligible newborns will receive:
- $25 seed deposit in a CalKIDS account
- $25 deposit in your CalKIDS account when you register to the Programs online portal
- $50 deposit in your account when you link a new or existing ScholarShare 529 college savings account to your CalKIDS account