CalKIDS offers California children free cash for college

The state of California is helping eligible children save money for college. The California Kids Investment and Development Savings (CalKIDS) program is a taxpayer-funded scholarship program designed to help kids save money for college from the day they are born. Launched in 2022, scholarship accounts are awarded to youth across the state with no financial contribution required.

CalKIDS automatically enrolls:

Children born in California on or after July 1, 2022, and
All eligible low-income 1st through 12th grade students enrolled in a California public school and identified by the Local Control Funding Formula (LCFF) as of Oct. 6, 2021.

The program grants up to $100 automatically to every child born in California on or after July 1, 2022, and up to $1,500 to eligible low-income students.

To check your child’s eligibility in the program, use the CalKIDS.org eligibility tool.

The tax-free money is invested in a mutual fund managed by ScholarShare, the state’s college savings plan, which can be used at an accredited educational institution on qualified expenses, including tuition and fees, books and supplies, room and board, and computer equipment. Withdrawals for other purposes are subject to federal penalty taxes and state and federal income taxes. Non-qualified withdrawals may also incur an additional 2.5% California tax on earnings.

“Research demonstrates that children with a college savings account are three times more likely to enroll in college and nearly four times more likely to graduate than children with no savings,” according to the CalKIDS program guide. You can claim your CalKIDS scholarship account through the CalKIDS.org portal. For more information, visit calkids.org/scholarships.

Additional County Update News – July 17, 2025