08/07/2026
A $1,000 deposit made today for an eligible child in foster care could grow to roughly $6,000 by the time they turn 18, based on historical stock market returns cited by Los Angeles County. The Board of Supervisors this week gave the Department of Children and Family Services 90 days to build a plan for reaching foster youth and resource families eligible for the accounts.
The funds come from a new federal savings program covering children born between 2025 and 2028, including those in foster care. Money can't be accessed until age 18, when it may go toward college, a first home or retirement savings.
For young adults aging out of foster care, that long-term investment matters. A fund toward college, a first home or retirement gives young people something few in this population have had: a financial head start. But reaching that point takes support along the way. Transition-age youth live on average 36% below the federal poverty line, and half experience homelessness within two to four years of leaving care. The financial cliff most of them face happens the day they age out, often without a family safety net to fall back on.
Long-term goals like these become achievable when the immediate needs, housing, transportation, basic stability, are met first. That's where programs supporting transition-age youth play a role, providing the day-to-day support that lets young people stay on track long enough to benefit from investments like this one.