ScholarShare Investment Board Secures Major Grant for Statewide Children’s Savings Account Program

The ScholarShare Investment Board (SIB or Board) was recently announced as a recipient of a grant from the Charles Stewart Mott Foundation. The grant, in the amount of $750,000, will be used by the Board over the next three years to market and increase awareness and education about the upcoming California Kids Investment and Development Saving Program (CalKIDS or Program) anticipated to launch by summer 2022.

CalKIDS, established in 2019 and expanded in 2021, will provide each child born in California and eligible low-income public-school students enrolled in first through 12^th grade with financial deposits and incentives ranging from $25 to $1,500 in a college savings account. Money held in a CalKIDS account may be used for higher education expenses in a child’s future. With an estimated 450,000 newborns and 3.7 million low-income public-school students, CalKIDS is expected to become the largest children’s savings account (CSA) program in the nation.

Treasurer Fiona Ma, Chair of the ScholarShare Investment Board, stated the following in response to the grant announcement: “I want to thank the Charles Stewart Mott Foundation for their generosity and strong support for children’s asset-building initiatives. This grant will ensure that CalKIDS will reach as many children and parents throughout the state as possible and give them the opportunity to start saving for college to create a path towards higher education.”

Based in Flint, Michigan, the Charles Stewart Mott Foundation seeks to promote a more just, equitable and sustainable society through programs focused on Civil Society, Education, the Environment, and the Flint Area. Through its Education Program, the foundation funds efforts to expand educational opportunities that help all children, particularly those from low‑ and moderate-income communities, to succeed in school, careers, and life. In the last decade, the Mott Foundation has worked to nationally to expand CSA programs such as CalKIDS.

“Every child, in every zip code, deserves the opportunity to pursue their educational goals and aspirations, and envision a pathway to higher education,” said Benita Melton, who directs the Mott Foundation’s Education Program. “We’re delighted to support CalKIDS’ efforts to raise awareness of children’s savings accounts and help families harness the power of CSAs to create brighter futures for their children.”

Assemblymember Adrin Nazarian (D-Van Nuys), one of the chief creators of the Program, added that “A child savings account can provide more than just a financial asset, but optimism and promise for decades to come. However, for CalKIDS to have its full impact, Californians must learn about the program so they can take full advantage of this opportunity. I am so grateful to the Charles Stewart Mott Foundation for their partnership on this critical endeavor and thankful for their generosity.”

CSA programs like CalKIDS encourage families to establish a pattern of saving early and provide families with a starting point to build assets and prepare for the costs of higher education. Academics have found that children with even $500 or less designated for college savings are three times more likely to enroll in college and nearly four times more likely to graduate than children with no savings.

In addition to administering CalKIDS, the ScholarShare Investment Board oversees California’s official 529 college savings plan, ScholarShare 529, which provides families with a diverse set of low-cost tax-advantaged investment options to save for higher education. ScholarShare 529 has been helping families save for college for more than 22 years and currently manages more than $13 billion in total plan assets as of December 31, 2021.

To learn more about CalKIDS and sign up for future updates, visit www.CalKIDS.org.

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