💰 Why Colorado’s First Step Program Could Be One of the Easiest Ways to Build Wealth for Your Child
- Team at LSH
- Jul 6, 2025
- 3 min read
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Most Parents Miss This: Colorado Is Giving You Up to $2,618
I admit, I myself didn't know about this program. Though with thoughts of researching more about the 529 Savings plan from a LSH post, and a recent Reddit post ("Friendly reminder that the state of Colorado will literally give you $2500 of matching 529 account funds per kid!" - thanks r/Denver!), there's money on the table for parents in CO. $2,618 worth! Use the resources you have if you can.
If you live in Colorado and have a child born or adopted since January 1, 2020, CO is offering to help you start their financial future — but most families don’t even know it exists.
It’s called the First Step Program, and it could be the easiest $2,618 as of 2025 your child ever receives toward education or future goals.
📌 What Is It?
The First Step Program is a savings incentive offered by CollegeInvest, a division of the Colorado Department of Higher Education. Here's how it works:
$118 gift when you open a CollegeInvest 529 account for your child
Up to $500/year in matching contributions for five years. You add $500/yr and then $500/yr would be matched
Total potential gift contributions: $2,618 per child (as per https://www.collegeinvest.org/first-step/ )
Not taxpayer funded – it’s paid for by CollegeInvest’s earnings
🔑 What Can the Funds Be Used For?
The money is deposited into a 529 College Savings Plan, which is an investment account. That means it can grow over time and must be used for qualified education expenses, such as:
College or vocational school tuition
Books, supplies, and laptops
Room and board (for half-time+ students)
Up to $10,000/year for K–12 private school tuition
Up to $10,000 toward student loan repayment
Withdrawals for non-education purposes may trigger taxes and penalties.
📈 Can the Money Grow?
Yes! And that’s the hidden power. Since the money is invested, it has the potential to grow tax-free.
Here’s what the growth could look like over 18 years, at a 7% annual growth, for 3 options:
Even without adding anything else, the $2,618 could grow to approximately $9,000. Add just $25–$50/month, and it could grow to $14,000–$20,000+.
💼 How to Qualify for the Full $2,500 Match
To receive the full match amount, you must:
✅ Be a Colorado resident
✅ Have a child born or adopted on or after Jan 1, 2020
✅ Open a CollegeInvest 529 before the child’s 8th birthday
✅ Be the parent or legal guardian on the account
✅ Apply for the First Step Matching Grant
✅ Contribute at least $500 annually for 5 consecutive years
💡 Tip: Automate $42/month to guarantee you reach $500/year.
Note, there are specific Family Adjusted Gross Income (AGI) limitations based on the household size to qualify for the Matching Grant Program ($2,500 over the 5 years). Information in the table below is accurate for 2025, and full details cab be found at https://www.collegeinvest.org/matching-grant-program/ .
Eligible AGI | |
2 | $122,640 or less |
3 | $154,920 or less |
4 | $187,200 or less |
5 | $219,480 or less |
6 | $251,760 or less |
7 | $284,040 or less |
8 | $316,320 or less |
✅ Quick Checklist for CO Parents
Want a checklist to see if you qualify? Download or share this image:
🌍 Do Other States Offer This?
Yes! Several other states offer baby bond or 529 seed programs:
Maine: $500 grant invested in a NextGen 529 plan
Pennsylvania: $100 seed invested in a PA 529 plan
Nebraska: $50 into a NEST 529 account
Illinois: $50 seed into a Bright Start 529 account
Other programs exist in Connecticut, Rhode Island, Nevada, and more.
But Colorado’s is among the most generous when fully utilized.
🚀 Why This Matters — And How LSH Helps
Most people never claim these benefits because:
They don’t know about them
They feel overwhelmed
They think the amount is too small to matter
At Little Success Habits, we believe:
💬 “Small actions create massive outcomes — when done consistently.”
We help you:
Build smart habits for both you and your child
Turn this program into a mindset shift and long-term advantage
🧠 Final Thought
$2,618 of gift matching over 5 years is a good start when combined with the $2,500 of contributions in CO. But the real win? Teaching your child what it means to build wealth — from day one.
To your success.
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