OAKLAND, CA – Families who are eligible for Medi-Cal and receive seed funding for a college fund for their newborns are healthier, less stressed, and more likely to aspire to education and college for their child at 18 months, according to the first study to assess the impact of integrating a 529 college fund program and financial coaching with a medical home.

The Brilliant Baby program, part of Oakland Promise – a nonprofit organization that aims to advance economic and educational mobility through cradle-to-career services – seeds $500 college funds for Medi-Cal-eligible babies, provides families with financial coaching free of charge and offers educational programming for caregivers. 

In a randomized controlled trial co-led by NORC at the University of Chicago and UCSF Benioff Children’s, researchers found a positive effect on parents’ hopes and educational aspirations for their child in families with infants who received college savings accounts, as well as improved health and lower stress among the caregivers. In those families who received personalized financial coaching, the program also improved caregivers’ perceptions of financial well-being and led to greater participation in the Special Supplemental Nutrition Program for Women, Infants and Children (WIC). 

Nationwide, in concert with scholarships and grants available to college students, Child Savings Accounts (CSAs) have become a cornerstone for preparing young children and their families with expectations and resources to complete the post-secondary education needed to secure job and career opportunities. 

“This research supports implications for wider impact at the state and national levels,” says Sandra Ernst, CEO of Oakland Promise. “With the mission of creating equity, CSAs are getting more attention and investment, such as with the new CalKIDS College Savings program in California, to help college become a reality for all children.” Read the full report HERE.