One Million CalKIDS Accounts Claimed by California Families

-Editorial 

California has reached 1 million claimed CalKIDS accounts, marking a milestone for the state’s program that provides publicly funded savings to help eligible children pay for higher education and career training.

Gov. Gavin Newsom and First Partner Jennifer Siebel Newsom announced the milestone. They unveiled the California Golden Start Challenge, a public-private initiative with Invest America aimed at increasing savings for California children.

CalKIDS, short for the California Kids Investment and Development Savings Program, was launched in 2022 as a statewide children’s savings program. The state has established and funded more than 6 million accounts representing more than $2.3 billion in savings.

Eligible students can receive up to $1,500 through CalKIDS, depending on their eligibility. Families can claim the accounts and contribute additional money, allowing savings to grow over time.

“Every kid deserves a shot at a bright future — no matter how much money their family makes,” Newsom said. “One million kids have already claimed their accounts, but millions more still have money waiting for them.”

The program provides eligible low-income public school students in grades 1-12 with a $500 automatic deposit. Eligible foster youth and homeless youth can receive an additional $500 deposit for each qualifying category.

For eligible newborns, CalKIDS provides up to $175. That includes a $100 automatic deposit for children born on or after July 1, 2023, and an additional $25 for families who claim their CalKIDS scholarship account.

More than 151,000 California students have used CalKIDS funds to pursue education, with $82.2 million distributed, according to the state.

“Every scholarship claimed represents a student and family taking an important step toward college or career training,” California State Treasurer Fiona Ma, chair of the ScholarShare Investment Board, said. “While we celebrate this achievement, our work continues until every eligible student has claimed the scholarship available to them.”

Despite the milestone, millions of dollars remain unclaimed. Families can determine their eligibility and claim accounts through CalKIDS.org.

The California Golden Start Challenge is intended to supplement the state program by encouraging businesses and philanthropic organizations to contribute to both CalKIDS accounts and federal 530A children’s investment accounts.

Among the early participants, Micron Technology has pledged $250 million, including $250 seed deposits for children with accounts in Sacramento and Santa Clara counties. In San Francisco, an anonymous donor contributed $3.5 million to provide a $500 deposit for every child born in the city in 2026.

The initiative follows the establishment of federal 530A accounts, which provide tax-advantaged investment accounts for children under 18 with Social Security numbers. Family members, friends, and employers can contribute, while governments and philanthropic organizations can make qualifying contributions.

Eligible children born between Jan. 1, 2025, and Dec. 31, 2028, can receive a $1,000 federal contribution deposited into their 530A account.

Michael and Susan Dell have also committed more than $800 million to California children through $250 contributions for 3.3 million eligible children statewide.

Newsom said the state’s efforts are intended to give children a financial foundation regardless of their family’s income.

“As a mom, I know how much giving our kids the best start in life can mean for their future success,” Jennifer Siebel Newsom said. “One million CalKIDS accounts is an incredible milestone.”

California is also incorporating financial education into its K-12 system. A statewide personal finance curriculum guide adopted by the State Board of Education covers banking and saving, budgeting, credit and debt, student loans, investing and retirement savings, and pathways to college, careers and apprenticeships.

The curriculum also includes information about scholarships, financial aid, student loans, and CalKIDS. It is scheduled to be offered beginning in the 2027-28 school year, with completion required for graduation beginning with the class of 2030-31.

Last month, Newsom and Ma announced a collaboration with the Early Wealth Partnership to develop a tool to help families identify and access children’s savings and other wealth-building resources for which they are eligible. Google.org is supporting the effort.