California opened college savings accounts for millions of kids. Why do so few know about it?

Three years after California launched a savings program to help children pay for college, most families still haven’t claimed the money — and many don’t even know it’s there.

The more than $2 billion program is designed to close the college access gap, especially for low-income families. But many Californians are missing out simply because they haven’t heard of it, said Cassandra DiBenedetto, executive director of the state-run ScholarShare Investment Board, which oversees the program.

“Our biggest challenge is also the biggest opportunity: We have families that haven’t claimed their accounts, that don’t know about CalKIDS,” she said.

The California Kids Investment and Development Savings Program, known as CalKIDS, automatically opens scholarship accounts for all children born in the state since July 1, 2022. The state deposits $100 into each account, with another $75 in bonuses available, including for linking up a ScholarShare account — California’s college savings plan. The program also is open to foster children and low-income public school students, with initial deposit amounts of up $1,500. Accounts accrue interest until the funds are used, which can happen anytime between the ages of 17 and 26. 

According to the program’s 2025 Annual Report, CalKIDS investments earned returns ranging from about 3% in conservative holding accounts to over 14% in portfolios linked to the state’s ScholarShare plan.

The funds can be used for higher education, whether for college or accredited training programs, including apprenticeships. 

DiBenedetto said CalKIDS is the nation’s largest child-development savings program. 

“What we found through research is that children with even a modest amount of savings towards college are three times more likely to attend college and four times more likely to graduate,” she said.

Low Alameda County numbers

More than 741,000 accounts have been claimed statewide out of over 5 million eligible children, roughly 15% of total accounts, DiBenedetto said. 

In Alameda County, more than 16,000 students and 7,000 newborns have claimed their scholarships — only a fraction of the 117,000 eligible students and 50,000 newborn or young-child accounts, according to the Investment Board. Roughly 4.2 million accounts remain unclaimed statewide.

The lack of awareness extends to students. Maximus Simmons, 17, a 12th grade student director on the Oakland Unified School District board, had never heard of the program before being asked. He attributed that to a lack of communication. 

“It’s not that it’s not available to us,” he said. “It’s not put forth and present in our minds. There’s no plan of outreach.” 

To raise awareness, DiBenedetto said the state is partnering with several organizations to reach families and educate them about the ways this funding can be used, including for school equipment like books, computers and housing. CalKIDS also has partnered with the California Student Aid Commission, which is responsible for administering financial aid programs, so that students can claim their accounts during the Free Application for Federal Student Aid (FAFSA) or the California Dream Act Application (CADAA) process.

The program is also building awareness through partnerships with local businesses and banks, and has been working with the Department of Social Services and organizations like John Burton Advocates for Youth to identify foster youth who may need support.

Despite the program’s low participation, DiBenedetto remains optimistic that awareness efforts will pay off as more families learn about the opportunity and start investing in their children’s futures.

“Once families find out about the account, and they claim the account, we really don’t run into challenges,” she said. “It’s a way to show the state’s investment into our California children’s future and to allow families an opportunity to invest in their own way at their own pace.”

(Top photo: Contributed by CalKIDS)

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