What difference would it make if every Californian grew up knowing that she or he had a nest egg to go to college or buy a home? What benefits would accrue to individuals, families, and California as a whole? California can find out by creating California KIDS accounts.

California could launch the CA Kids program, providing a one-time, $500 deposit in an investment account at birth for the 566,000 children born in California each year. The state could match the savings of lower-income parents as they put aside money for their children. At just over $283 million for the first year, this relatively small investment—less than half a percent of the state’s $100 billion budget—would be transformative.