California to Match Money Saved for College

By EGP Staff Report

Hoping to incentivize low- to moderate-income families to save for college, California lawmakers have passed a bill that will allow eligible participants to receive a dollar-for-dollar match contribution from the state of up to $200 in college savings.

The Every Kid Counts Act, authored by Assemblyman Phil Ting (D-San Francisco) and signed into law last week by Gov. Jerry Brown, provides $3 million in funding to create the Every Kid Counts College Savings Matching Grant Program.

Research shows that children with savings accounts, however small, are seven times more likely to attend and graduate college, according to a statement released by State Treasurer John Chiang. He announced his “office will now begin incentivizing thousands of low- to moderate-income families to get in the habit of socking away a few dollars each month, with an eye toward making a college degree a reachable dream for their children.”

The ScholarShare Investment Board, which oversees ScholarShare, California’s 529 college savings plan, will administer the program.

“The Every Kid Counts Act is a significant step forward in the effort to help bring greater educational attainment to those families who need it the most,” said Chiang, chair of the ScholarShare Investment Board. “Faced with skyrocketing tuition, we must empower California families to save, invest, and plan for their children’s futures.”

A study conducted by the Pew Research Center found that individuals with a college degree earn substantially more over their lifetime than their counterparts with only a high school diploma. In today’s market, millennials with college degrees earn about $17,500 more annually, according to the study.

Chiang said passage of Ting’s bill reflects California’s “ongoing commitment” to “its state-sponsored college savings investment plan, ScholarShare, to develop innovative programs to even out the educational and economic playing field.”

To learn more about the Every Kid Counts Act, visit http://treasurer.ca.gov/scholarshare/

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July 6, 2017  Copyright © 2012 Eastern Group Publications, Inc.

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