Knowledge and skills development are critical to empowering individuals for lifelong success. Municipal leaders, through economic development and workforce development, are advancing practices and programs that help adults gain skills and credentials that allow them to secure higher-paying jobs. But what if we focused instead on building a pipeline of youth who truly see an opportunity for education after high school and saved for it from a young age?
A growing number of municipalities across the country are doing this through Children’s Savings Account programs (CSAs). CSAs offer the opportunity for caregivers and the community at large to invest in the potential of all youth and engage with them throughout their primary education, advancing not just the possibility of education after high school but tangible hope for increased opportunity.
CSAs are long-term savings or investment accounts designed to help children and their families save for post-secondary education. Research has found that low- to moderate-income students with savings as low as between $1 to $499 intended for education after high school are three times more likely to enroll and four times more likely to graduate from post-secondary education. Municipalities nationwide are playing a critical role in implementing CSA programs, and are part of the reason why over 5.8 million children and youth are now participating in CSA programs.
The first city-led CSA program in the United States, Kindergarten to College (K2C), was started in San Francisco in 2011 by then-Mayor Gavin Newsome and Treasurer José Cisneros.
The National League of Cities (NLC) spoke with Treasurer José Cisneros of the City and County of San Francisco to learn more about K2C and the recent program evaluation findings. The City and County of San Franciso provide an initial deposit of $50 in public funds for every child entering kindergarten in San Francisco’s public schools. As of May 2024, the program has more than 54,000 accounts, with $17 million saved and an average account balance of over $1,000. The program celebrated its first high school graduating class in 2023 with 600 seniors earning an average savings of $1,422.
NLC: What is Kindergarten to College, and why was it started?
Treasurer José Cisneros: Kindergarten to College (K2C) is the first universal, automatic citywide children’s savings account (CSA) program in the U.S. Every K-12 student in San Francisco public school automatically receives a K2C account at Citibank seeded with $50 for their future education. There is no paperwork to fill out, and the program does not use Social Security numbers. For some families, K2C provides their only formal bank account. Families with a K2C account can immediately begin saving for education after high school. Students and families can access additional incentive dollars by engaging with their accounts, such as by viewing their balance online or making a deposit. Families also have the option to transfer funds into a 529 account.
K2C was inspired by promising research showing that having savings for future education could build children’s expectations that “college is for me” and potentially increase the likelihood of enrolling in and completing college or vocational school. Education after high school can make a critical difference to students’ future economic success, as college graduates with an associate’s degree earn $495,000 more over their lifetime, and those with a BA degree earn $1 million more. K2C is a literal investment in the future of San Francisco students.
NLC: Why was now a good time to evaluate K2C, and what were the significant findings?
JC: The first class of kindergartners who received K2C accounts in 2011 graduated from high school in 2023. As the first universal, automatic CSA in the nation to see a cohort of students from kindergarten all the way to high school graduation, it was a critical time to evaluate K2C.
The first findings from the class of 2023 show positive and promising effects on college enrollment (including 2-year and 4-year institutions) and on-time high school graduation:
College Enrollment
- Overall, K2C participants’ college enrollment rate was 6% higher than the comparison group.
- This effect was largely driven by gains among students from underrepresented groups—Black/African American, Hispanic/Latino, Filipino, Pacific Islander or American Indian/Alaskan Native— who had a 12% higher college enrollment rate than similar students in the comparison group.
- K2C closed 30% of the college enrollment gap for underrepresented students.
These preliminary findings only capture enrollment by September, immediately after students graduated from high school. Thus, K2C’s impact may grow as more students head to college.
On-Time High School Graduation
- K2C participants from underrepresented groups had a 7% higher on-time graduation rate than similar students in the comparison group.
- K2C narrowed 29% of the gap in on-time graduation for underrepresented students.
These findings on college enrollment and on-time graduation are statistically significant and control for key factors such as gender, race and language status, as well as median income by zip code. For more details, read the original conference paper.
NLC: What additional findings are you most looking forward to?
JC: The findings demonstrate that a universal, automatic children’s savings account program can be an effective way to boost college access, especially for underrepresented students. At the same time, these are only the very first, preliminary findings of an in-depth, three-year study. Over the next two years, our team is looking forward to learning much more about the program’s impact, including:
- Detailed analyses of outcomes for students from different demographic groups
- Learning whether and how families’ engagement and savings with the program affect outcomes
- Seeing effects over time, including outcomes for the classes of 2024 and 2025 and updated outcomes for the class of 2023 as students enter college up to two after their high school graduation
- Understanding what K2C means to participants and identifying opportunities to improve the program
I am thrilled that K2C is helping move more underrepresented students into college. As we learn more from the evaluation over the next two years, we’ll identify opportunities to continue innovating to expand the program’s impact. For instance, I look forward to greater integration and complementarity with the statewide CalKIDS CSA program, including allowing students to link their K2C accounts to their CalKIDS accounts.
NLC: What advice do you have for other municipalities considering starting or supporting a citywide Children’s Savings Account program?
JC: I offer five pieces of advice to other cities:
- Universal and automatic enrollment is essential to ensure your program is reaching all eligible young people. An opt-out design removes obstacles such as complicated forms, language barriers and unfamiliar financial products.
- An accessible account structure allows families to easily make deposits and interact with their accounts. K2C families can make deposits in person, online or via direct deposit. We also work with families to shift savings into higher-interest 529 accounts when their deposits exceed $1,000.
- Government commitment helps foster sustainability. In San Francisco, the City provides the $50 seed deposits in the accounts, providing a stable funding source for the program.
- Regular communication with families is essential. For children and families to benefit from a CSA, they must know about the account, its balance and how to use it. K2C sends quarterly statements, informational emails and text messages to help families stay engaged with the program.
- Integration with trusted community partners is a key way to grow families’ awareness and engagement. The San Francisco Unified School District is of course an essential partner. Within the school district, school ambassadors are trusted messengers for students and families. K2C also partners with five local nonprofits to spread the word about K2C as well as the statewide CalKIDS CSA program. These partnerships provide a critical means to continually reinforce the “college-going” message to children throughout their growing years.
NLC: Given your commitment to advancing economic mobility and wealth building, what’s next for San Francisco?
JC: I am committed to building an economy and government systems that truly are designed to serve low-income residents. My office will continue to leverage our seat of local government to advance economic justice, moving towards systemic reforms that improve the economic lives of San Franciscans. Over the past 20 years, my office has not just envisioned a more equitable financial landscape — we’ve actively shaped it. I look forward to building on our groundbreaking work on flagship programs, including Kindergarten to College, Bank On San Francisco, Be The Jury, SF Museums for All and financial counseling. In addition, we see great promise and hard work ahead on issues such as fine and fee reform, socially responsible banking and barriers to financial inclusion.
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