By Phil Ting, Member of the Legislative Assembly –
September is College Savings Month! To celebrate, ScholarShare529, a federally sponsored college savings plan, is offering a $100 bonus if you open an account with an initial deposit of $1,000 or more by the end of this month. After that everyone can contribute. see an increase in income; Then, withdrawals for qualifying college expenses are tax-free at both the federal and state levels.
Why start? Research shows that children with college savings accounts of $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 stats like these, it’s easy to see the inspiration behind another great program called the California Kids Investment and Development Savings Program, or CalKids. It encourages the mindset — even in hopes of going to college — and helps families boost college funds with seed money from last year’s and this year’s $2 billion in state budgets. more than.
College savings accounts will automatically open in California for all students with incomes below grades 1-12 and all newborns born on or after July 1, 2022. The California Department of Education and the California Department of Health and Human Services will identify eligible children who can join families on CalFresh or CalWORKS. No application is required and there is no obligation on families to make a financial contribution. State funded lump sum deposits are as follows:
Up to $1,500 for 3.4 million school children:
- $500 Automatic Deposit: Eligible low-income public school students in grades 1-12;
- $500 Additional Security Deposit: For foster children;
- $500 Additional Security Deposit: For youth affected by homelessness.
Up to $100 for newborns regardless of income:
- $25 Automatic Deposit: Any eligible child born on or after July 1, 2022;
- $25 Additional Deposit: Those who register on the program’s online portal;
- $50 Additional Deposit: Those linking a new or existing ScholarShares 529 account to a CalKIDS account.
While people cannot deposit money directly into a CalcKids account, they can open a ScholarShare 529 college savings account to deposit their deposit and then link the CalcKids account to it. CalKIDS is managed by the ScholarShare Investment Board, which reports to the Office of the California State Treasurer, to ensure seed capital grows safely.
When a child enrolls in a four-year or community college or technical/vocational program, the state is directly entitled to the student’s educational expenses such as tuition, books, computer equipment across the country and even in some countries abroad. Wants to send money to schools. , accessories and more. The student must have resided in California for at least one year immediately prior to submission to a postsecondary institution. If the money is not used for college before the age of 26, the money remains in the fund for use by others.
I encourage you to register for the webinar to learn more about this new program. Earliest dates include: October 6th and 20th, 11am to 12pm PST. You can register via the Calcids website:
While there are over a hundred programs nationwide that open long-term savings accounts for children, California will be the largest. As Speaker of the Parliament Budget, it is exciting to reflect on our investments and the bright future that the CalKIDS program has to bring. A degree or specialized vocational training can open so many doors that lead to good careers and opportunities for advancement. A well-trained workforce also helps the state’s economy to thrive.
Phil Ting represents the 19th Assembly District, which includes the Westside of San Francisco and portions of South San Francisco with the communities of Broadmoor, Colma and Daly City.
Released September 22, 2022