Boosting College Savings Rates
Happy College Savings Month! To celebrate, ScholarShare529, a state-sponsored college savings plan, is offering a $100 bonus when you open an account by the end of September with an initial deposit of $1,000 or more. Anyone can contribute thereafter. Watch earnings grow, then when it's time, withdrawals for qualified higher education expenses are tax-free at both the federal and state level.
Why start? Research shows that children with a college savings account with $500 or less are three times more likely to enroll in college and nearly four times more likely to graduate than children with no savings.
With statistics like that, it's easy to see the motivation behind another great program we just launched called the California Kids Investment and Development Savings Program, or CalKIDS. It promotes the mindset - even the expectation - of going to college, while also helping families jumpstart college funds with seed money from last year's and this year's state budget, totaling more than $2 billion.
College savings account will be automatically opened with one-time, state-funded deposits:
- Up to $1,500 for all lower income students in California from grades 1-12
- Up to $100 for all newborns born on or after July 1, 2022, regardless of family income
There is no need to apply, and no requirement that families make any kind of financial commitment. While you cannot directly add money to a CalKIDS account, you can open a ScholarShare 529 college savings account to make deposits, then link the CalKIDS account to it.
As Assembly Budget Chair, it's exciting to think about the potential this investment in our children could bring. A degree or special career training can open so many doors, leading to good careers and upward mobility. Plus, an educated workforce helps the state's economy thrive. It's an honor to have a hand in strengthening California's future.
Assemblymember, 19th District
P.S. Please join me and San Francisco Supervisor Connie Chan, as we co-host the Sixth Annual Richmond District Autumn Moon Festival. Experience community and cultural diversity this Saturday, September 17 from 11 a.m. to 3 p.m. on Clement Street, between Seventh and Tenth Avenues. See you there!