Executive director of ScholarShare Investment Board Cassandra DiBenedetto believes that youth gaining exposure to financial literacy is critical to educational success after high school and will translate to their adult lives.
“Financial literacy is not natural to most communities, so it has to be taught,” DiBenedetto said. “A lot of times students are not super comfortable walking into a bank.”
ScholarShare Investment Board is a state program of the State Treasurer’s Office, and runs the California Kids Investment and Development Savings Program (CalKIDS). That program teamed up with Golden 1 Credit Union to educate high school students and families on banking basics and higher-education savings opportunities provided by the state at Golden 1’s Cosumnes branch in Sacramento on April 5.
Golden 1’s Cosumnes branch on Bruceville Road is located within the eighth-most diverse ZIP code in the U.S., according to Niche, a data analytics company that assesses neighborhoods and schools. Niche calculated the rating using U.S. Census data and takes into account the levels of variance in race, age and income levels. In the 95823 ZIP code, the population is 35% Hispanic or Latino, 18% Black, 16% white, 5% Asian, 4% Pacific Islander and 19% identifies as some other race.
The free late-afternoon event hosted about 70 high school students and families from the Sacramento City Unified School District, with special guests including California State Treasurer Fiona Ma and Sacramento Kings mascot, Slamson, in attendance. The second annual Community Day was expanded to multiple Golden 1 branches across Northern California, which hosted similar events on April 5.
“We want to make sure that you as the next generation can stay out of student loan debt and dream for the future,” said Ma, a speaker at the event and a candidate for California lieutenant governor in 2026. “Whatever you all want to be, money should not be the barrier.”
CalKIDS was launched in 2022 by the state to initiate college savings by launching scholarship accounts for children across the state and is administered by the ScholarShare Investment Board, according to the CalKIDS website. All children born in California on or after July 1, 2022, are automatically offered a CalKIDS account. Some public school students not born in California may also be eligible for an account.
California public school students may be eligible for up to $1,500 in scholarship awards that go directly to a CalKIDS account. Low-income, English learner, foster and homeless youth are eligible for a CalKIDS scholarship.
“This is kind of like a little present to all the kids,” Ma said. “It’s just our way in the State of California to invest in our next generation, to decrease some of the equity gaps that are out there, introduce our young people to financial literacy and savings. It’s just a win-win-win all around.”
CalKIDS funds can be used to cover tuition and fees, books, school supplies, room and board and computer equipment at eligible higher-education institutes across the country, according to the CalKIDS website.
Families can add funds to CalKIDS accounts and are encouraged to open a ScholarShare 529 account, which is a state-sponsored education savings account that is managed by the state treasurer’s office and offers tax advantages like tax-free growth, according to the ScholarShare 529 website.
DiBenedetto said CalKIDS accounts help students gain real-life banking experience.
“For some students, their CalKIDS account is the only savings they have for higher education,” DiBenedetto said. “It’s encouraging for them to learn the state believes in them and has invested in their future. They can watch the account grow with the market, which teaches financial literacy in a tangible way.”
Students from Hiram W. Johnson, John F. Kennedy, McClatchy, Rosemont, George Washington Carver and Health Professions high schools were able to enjoy face and body painting, hat decorating and balloon twisting while being treated to free smoothies from Jamba Juice and were entered into a raffle for the chance to win free tickets to an upcoming Kings game.
A DJ fueled the fun in the bank’s parking lot while three Kings Dancers accompanied Slamson to liven the atmosphere throughout the event. The bank remained open and invited students to come in and claim their CalKIDS accounts and introduce them to the world of banking.
Events like these help remove the stigma some communities have around banking at an early age, said Erica Taylor, Senior vice president of Community Impact and Public Relations at Golden 1 Credit Union.
“Diverse communities often face cultural norms or distrust of institutions, and we want to break down those barriers,” Taylor said. “It’s more than just saying we’re here — we have to prove it, and events like this help us do that.”
This story is part of the Solving Sacramento journalism collaborative. Solving Sacramento is supported by funding from the James Irvine Foundation and the James B. McClatchy Foundation. Our partners include California Groundbreakers, Capital Public Radio, Outword, Russian America Media, Sacramento Business Journal, Sacramento News & Review, Sacramento Observer and Univision 19. Sign up for our monthly newsletter.
By Chris Woodard
