SACRAMENTO, Calf. — While Adan Cruz’s kids might be a long way away from preparing for college, California is helping them get ahead by giving every low-income public school student an education savings account.

Cruz is one of the many parents who signed up for the California Kids Investment and Development Savings Program. CalKIDS gives students money for education or career training.

What You Need To Know

  • CalKIDS is a program that gives every low-income public school student an education savings account

  • Adan Crus is one of the many parents who signed up for the program gives students money for education or career training

  • The CalKIDS website has an eligibility tool where parents or guardians can learn if their child can participate

  • The state gives qualified low-income students $500, while kids who are homeless receive an additional $500, and foster youth can also get another $500

“As parents, we need to start thinking about it because where is the money going to come from when they get to college age?” Cruz said.

Cruz says it was a simple process to activate his son’s account. The CalKIDS website has an eligibility tool where parents or guardians can learn if their child can participate.

“It’s an amazing program, and it’s something I had no idea that was available for kids. And so having two kids and understanding about investing, having money for college,” Cruz added.

The state gives qualified low-income students $500. Kids who are homeless receive an additional $500 and foster youth can also get another $500. The maximum award is $1,500.

“It’s not just the $500 because it is invested into the market. So what’s going to happen to that money as time goes by? Hopefully it will grow and have enough for at least half of the college fund,” Cruz noted.

California also gives anyone in the state born on or after July 1, 2022, up to $175 dollars, regardless of their parents’ legal or financial status. All parents or guardians have to do is apply online.

The funds for the program were set aside a few ago, when the state was in a budget surplus according to California Treasurer Fiona Ma.

“The governor and the legislature put 2 billion dollars to help kids get out of poverty so right now there are 4 million young people that are eligible for free money in their account so that it can grow and they can use it for higher education,” Ma explained.

The money can be used for anything directly related to higher education, such as tuition, books or room and board. It also applies to those who go to trade school.

“It gives the kids hope. This is free money, no strings attached. Parents just have to log on to calkids.org, put some information in and then that money will start growing for up to 18 years,” said Ma.

According to a study by Washington University in St. Louis, kids with a college savings account that has $500 or less are three times more likely to enroll in college and nearly four times more likely to graduate than children without savings.

Cruz’s son, Devan, already knows what he’s going to use his savings for, despite only being in the second grade: “to go off into space and discover new things about planets.”

It's thanks to program like CalKIDS, Devan can shoot for the stars.