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College savings accounts opening for all California newborns

Newborns can receive up to $100 in their CalKIDS account and low-income school age children can receive up to $1,500.

SAN DIEGO — Many California families will be getting a jumpstart on college savings. 

This week the governor is expected to announce the launch of the California Kids Investment and Development Savings Program (CalKIDS).

The new program will be giving free money in a college savings account to every new baby in the state.

An account will automatically open for every baby born to a California family on or after July 1. Newborns can receive up to $100 in their CalKIDS account.

Low-income K-12th graders will receive $500, foster children get an additional $500 and those experiencing homelessness will get up to $1500. The state hopes the savings accounts will encourage parents to also invest in their kids' futures.

"It definitely sounds motivating for sure," said Pamela Mclemore

Mclemore is already planning ahead for her three and 7-year-old. She knows the importance of saving early.

"I work downtown at city college actually in the financial aid department so I have the opportunity to work with students everyday trying to gain access to college," she said.

The CalKIDS accounts will be kept by the state and invested by professionals. Parents can track the account's growth. The money is tax-free and can only can be used for college or career training expenses.

CalKIDS will be holding webinars to educate families about these accounts. 

You can learn more, here.

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