CalKIDS aims to make the dream of getting a college education a reality for every child in the State of California, especially those from traditionally underserved communities. To achieve this, CalKIDS will be helping families prepare financially and jumpstart their college savings by automatically establishing savings accounts for every baby born in the state, regardless of household income, and eligible low-income public school students enrolled in 1st through 12th grade.
Every eligible child will have money deposited in their CalKIDS account. These funds can make a big difference. They can also serve as the beginning of additional savings for higher education.
The initial deposit going to babies born on or after July 1, 2023, is $100 thanks to increased funding from the state. That is regardless of income. Babies born between July 1, 2022, and June 30, 2023, are awarded $25 as an initial deposit.
Both groups of newborns can receive additional funds – $25 if a parent or guardian registers the account, and $50 if a parent links the account to a ScholarShare 529 account, either new or existing.
Eligible public school students and English learners in 1st through 12th grade, as defined by the Local Control Funding Formula, will receive $500. An additional $500 will be deposited in their CalKIDS account if they are also identified as foster youth and $500 if they are homeless. The maximum award is $1,500.
Please note, funding amounts are subject to change.
When the student is ready to use their savings to pay for any qualified higher education expense, they can redeem their funds, including any earnings, from their CalKIDS account and/or their own ScholarShare 529 account.
Stay tuned for additional information.
