Child Early Wealth Resources
What Is a Child Savings Account?
A Child Savings Account (CSA) is a long-term savings or investment account established for a child, often to help pay for college, vocational school, or other post-secondary education. Some CSA programs (such as baby Bonds and 530A Trump Accounts) allow for a broader use of funds. Most CSAs in California are structured as 529 accounts, tax-advantaged investment accounts whose earnings grow tax-free when used for qualified educational expenses.
CSAs are different from regular savings accounts in several key ways:
- Tax advantages: While details vary by program, commonly, earnings grow tax-deferred, and withdrawals for qualified expenses are tax-advantaged..
- Seed deposits: Most programs start accounts with an initial deposit (often called a “seed”) with public or philanthropic funds.
- Long-term mindset: They are designed to grow over time, building a real financial foundation before they ever set foot on a college campus.
- Asset-building: Even a small account balance signals to a child, and their family, that college is a realistic goal. Research consistently shows children with dedicated education savings accounts are more likely to attend and complete college.
Why CSAs Matter
California is home to a growing wealth gap that disproportionately affects families of color and low-income communities. By prioritizing the engagement of low- and moderate-income families, Child Savings Accounts help close this gap and give every child, regardless of their family’s income, immigration status, or background, a dedicated financial stake in their own future. California’s 14 locally-operated CSA programs alone provide more than 200,000 children and youth with over $30 million invested for their college futures. The state’s CalKIDS program reaches 6 million children with $2.5B invested.
Timothy Poseley
Program Mananger, College and Career Success Programs
For additional information, please call 909.386.2646
601 North E Street
San Bernardino, CA 92415-0020