Oakland Promise has enrolled more than 1,000 families into its “Brilliant Baby” program. It helps low-income families fund their children's college education by providing an initial 500 dollar investment.
The initial deposit is funded by a combination of donations from the City of Oakland, private companies, and individuals.
This is how it works: the money is put into a 529 plan and the investment accrues over time. A 529 plan enables the college account owner to receive special tax benefits.
For Oakland Promise, its combined investment from more than 1,000 families has seen a nearly 33 percent gain since 2017.
In order to qualify, a baby must be under one-years of age, a resident of Oakland, and eligible for Medi-Cal. In addition, the program provides each family with a financial literacy coach, as well as general parenting workshops.
Oakland Promise is part of a larger effort to address educational inequalities in the Oakland area.
In a study by the California Department of Education looking at 2017-2018 college-going data, 58 percent of Oakland high school graduates enrolled in college within a year of graduating. That’s six percent lower than the state average.