During the 2024 National College Attainment Network (NCAN) National Conference, the ScholarShare Investment Board and Riverside County Office of Education collaborated on a presentation to increase awareness and participation in California Kids Investment and
Development Savings (CalKIDS Program) focused on children's college savings accounts (CSAs). The presentation, featuring significant research by William Elliott, Hyun-a Song, and Ilsung Nam (2013),
underscored the crucial role that these financial tools play in shaping educational outcomes, particularly for low-income families. As policymakers, educators, and community leaders strive to improve access to higher education, the insights gained
from this presentation are more relevant than ever.
The statistics presented were nothing short of compelling: children with a CSA are three times more likely to attend college and four times more likely to graduate. These striking figures highlight the transformative
impact that CSAs can have not just on individual students but also on entire communities.
The presence of a CSA can create a college-going culture within families and communities. When parents open a savings account for their children, it signals a commitment to education and a belief in the child's potential. This act fosters conversations
about higher education and encourages children to visualize themselves as college students. The idea of "college" moves from a distant dream to an attainable goal, deeply influencing their academic motivation and aspirations.
CSAs provide a sense of financial security that empowers families. Families with dedicated funds for education are less likely to feel overwhelmed by the financial barriers associated with college. This financial preparation translates into a proactive
approach to teaching, where families can focus on academic achievements rather than merely surviving the financial strain.
Key Research Findings
One of the pivotal studies discussed was the Seed for Oklahoma Kids initiative, launched by Washington University in St. Louis (MO) in 2007. This longitudinal study
tracked families from diverse backgrounds, half of whom received a $1,000 deposit in a state-owned 529 college savings account for their newborns. The findings from this research, which continued into 2021, revealed several positive outcomes that
resonate with the overall theme of the conference.
Families with a CSA demonstrated significantly enhanced engagement in their children's education. Parents were more likely to attend school events, assist with homework, and engage in discussions about academic and career goals. This increased involvement
is crucial, as parental support is a key predictor of student success.
The study also showed that families with CSAs exhibited better parenting practices. With the stress of financial uncertainty alleviated, parents found it easier to monitor their children’s schoolwork and provide emotional support. Interestingly, mothers
who participated in a child development program post-Great Recession reported a heightened focus on saving for college and a renewed sense of confidence in their ability to afford higher education.
Children with CSAs demonstrated higher levels of hope, improved behavior, and a stronger academic self-concept. These attributes are essential for academic success and personal growth. When children believe that their future includes college, they are
more likely to invest effort in their studies and extracurricular activities, paving the way for long-term success.
The Emergence of CalKIDS
During the presentation, a significant focus was placed on California’s innovative CalKIDS program, designed to broaden access to higher education for the state’s children. Established in 2019, CalKIDS aims to foster asset-building for education and career
development, particularly among low-income families. The program is a model for how states can proactively support their residents.
One of the most remarkable features of CalKIDS is its automatic enrollment policy. All newborns in California from July 1, 2022, are automatically enrolled in a CSA, ensuring that financial resources are accessible from the very beginning of life. This
initiative reflects a commitment to equity and recognizes that every child deserves the opportunity to aspire toward higher education, regardless of their family’s financial background.
Families can receive initial deposits of up to $175 for newborns and additional funding for low-income students, including those identified as foster youth or unhoused. This targeted approach ensures that the most vulnerable populations receive the support
they need to succeed.
CalKIDS also emphasizes the importance of financial literacy. By providing educational resources and workshops, the program helps families understand the benefits of saving for college and how to manage their funds effectively. Financial literacy is an
essential life skill that can empower children and families to make informed decisions about their finances, further enhancing their chances of academic success.
Financial Literacy and Community Engagement
One of the standout themes from the presentation was the integration of financial literacy into the educational curriculum. As financial decisions become increasingly complex in today’s economy, equipping students with financial knowledge is more critical
than ever.
Strategies for Engagement
To maximize the effectiveness of the CalKIDS program, strategies for engaging parents and students were outlined:
Community Events: School events such as back-to-school nights and parent-teacher conferences can serve as platforms to promote financial literacy and the benefits of CSAs. These events can include workshops where parents learn how
to claim and utilize their CalKIDS accounts effectively.
Curriculum Integration: Incorporating financial literacy lessons into core subjects can help normalize discussions about saving for college and preparing for future educational expenses. For instance, math lessons could include budgeting
exercises that teach students how to plan for college costs.
Collaboration with Community Organizations
Collaborating with community organizations, such as AVID (Advancement Via Individual Determination) and Cal-SOAP (California Student Opportunity and Access Program), can facilitate the identification of eligible students and provide support in navigating the CalKIDS program. By leveraging existing networks, schools can ensure that
all eligible families are informed and engaged.
Real-Life Impact
The stories shared during the presentation underscored the profound difference CalKIDS is making in students’ lives. Testimonials from college students illustrated how having access to funds from their CalKIDS accounts alleviated financial stress, allowing
them to focus on their studies rather than juggling multiple jobs.
For instance, Lizbeth, a student at California State University (CSU) Long Beach, expressed her relief at having funds available for tuition, which helped her avoid accumulating significant debt. Similarly, Johanny from CSU San Bernardino shared how the
financial support enabled her to manage living expenses without the burden of working two jobs. These real-life examples highlight the tangible benefits of CSAs, showing how they can transform the college experience for students from low-income backgrounds.
Conclusion
The insights gained from this conference presentation reinforce the idea that college savings accounts are more than just financial tools; they are vital components of a supportive framework that promotes educational aspirations among children, particularly
those from low-income families. Programs like CalKIDS exemplify how strategic interventions can lead to significant changes in educational outcomes, encouraging a culture of financial literacy and college readiness.
As we look to the future, investing in our children’s education through savings accounts is an essential step toward building a more equitable society. By fostering financial literacy and creating accessible pathways to higher education, we can empower
the next generation to realize their full potential and transform their dreams into reality. The message from this conference is clear: when we invest in our children’s futures, we are investing in a brighter, more prosperous future for all.
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