Children's Savings Account Incentive Pilot Program

Youth economic advancement

LAUSD (select only if you have a district-wide partnership)

Pilot or new project, program, or initiative (testing or implementing a new idea)

Disadvantaged students, often from families who are low-income, first-generation, or otherwise underrepresented, are less likely to attend and graduate college than their more privileged peers. There are many barriers that create this college achievement gap, including lack of access to college prep information, less familiarity with postsecondary options, and in particular, financial constraints. The cost of postsecondary education continues to rise and there are limited resources in place to support high-need students. As a pathway to better jobs and career stability, a college education can help students overcome the multigenerational cycle of poverty, and the City of LA Community Investment for Families Department takes an active role in helping students reach college through a number of existing programs, including through our contracted FamilySource Center nonprofits, and, relative to this grant proposal, Opportunity L.A.

To help address the aforementioned educational and economic disparities, the City and County of Los Angeles, in partnership with the Los Angeles Unified School District (LAUSD), launched Opportunity L.A. (OLA) in 2020. The program is managed by the Community Investment for Families Department (CIFD) and is currently the largest universal CSA program in the country.
OLA automatically enrolls all first graders attending LAUSD schools, regardless of income, immigration status, or background, and provides each student with a no-cost, no-barrier savings account at Citibank.
CIFD proposes utilizing the LA2050 grant to launch incentive programs that deepen OLA participation and foster both savings behaviors and academic achievement. The activities below, which are inspired by other successful efforts from across the nation, would result in an additional $100 deposit from the City into each students' accounts, aiding them on their college savings journey.
Tutoring Completion: Student completes four or more tutoring sessions through a FamilySource Center College Corner
Savings Habits: Family contributes $100 of their own savings within a six month window
Financial Education: Family completes four sessions of financial education modules
Tax Preparation: Family completes taxes through a Free Tax Prep LA partner and contributes at least $100 of their tax return into their OLA account
Academic Improvement: Student improves their GPA by 0.5 points or more between consecutive semesters

This incentive pilot program would entice more families to actively engage with Opportunity L.A., provide approximately 650 students with $100 towards their college savings goals, and create opportunities for further engagement with CIFD as a Department, allowing us to provide access to additional programs such as financial coaching or college tutoring. On a long-term basis, this pilot program would serve as a proof point for garnering further public and private investment, giving CIFD a chance to expand the breadth and depth of the proposed incentive tracks, investing more resources in underserved students and creating a culture around college attainment. In turn, this would increase college enrollment and graduation among high-need LAUSD students and schools, helping more families in LA County achieve economic mobility.