Under a new taxpayer-funded scholarship program, California lawmakers are planning to open a college savings account for every kid in California. According to Gov. Gavin Newsom, about 3.4 million kids will now have a college savings account. How great is that!
The new program is called CalKIDS and once a child is born, they can 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 the growing account.
Once the child graduates from high school, the money from the savings account will be sent directly to whatever school they decide to go to. Kids born on or after July 1, 2022 along with eligible low-income public school students in grades 1-12 will be able to receive the benefits from the CalKIDS Program. 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