Early savings for children's higher education: A comparison between savers and non-savers in a Child Development Account program (original) (raw)
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Preparing Children for Success: Parents' Perspectives on Promoting Savings and Education
Journal of Family Issues, 2013
Many states are implementing asset development strategies to promote postsecondary education for low-to moderateincome families, realizing that limited education is a powerful predictor of poverty, and poverty mediates the likelihood of obtaining postsecondary education. Using demographic and qualitative data collected from two groups of low-to moderate-income parents (N = 24), this article highlights two programs that promote savings and increase post-secondary education for these children and families. The 21st Century Scholars Program targets youths, and the complementary Educational Development Accounts program targets their parents. This article also explores perspectives of the participants' experiences, beliefs, and perceptions relative to savings and education and the success of their children in these areas. It concludes with implications for asset-building programs and policy whose aim is to assist low-to moderateincome families in achieving economic and educational mobility and implications for social welfare policy.
Child Development Accounts, parental savings, and parental educational expectations: A path model
Children and Youth Services Review
Parents' expectations for their children's education, and efforts to foster suitably positive expectations, are worthy of policy attention. Previous research indicates that early saving for a child's postsecondary education can foster and sustain high parental expectations, yet little is known about the operative mechanisms. This study presents analyses from a randomized experiment with Child Development Accounts (CDAs), a policy to encourage early financial investments for education and to shape parents' expectations concerning their young children's educational goals. Our research provides key evidence on whether parental account holding for children's college (a) has a positive impact on parents' expectations for their children's educational attainment and (b) mediates the CDA's effect on their educational expectations at an early stage in their child's development. We employ data from the SEED for Oklahoma Kids (SEED OK) experiment, the first randomized social experiment to test universal and progressive CDAs. We conduct a path analysis and a supplemental analysis with marginal structural models (n = 2160). We find that holding a college-savings account has a significant effect on parents' educational expectations for their children and that whether one holds an account mediates the effect of CDAs on such expectations. Findings suggest that CDAs may promote early parental financial investment and high expectations. Research and policy implications are discussed. 1.2. The roles of assets in the formation of expectations In the status-attainment theory, parental income, education, and
Parental Self-Efficacy and Joining a Savings Program for Children's Education
Research on Social Work Practice, 2011
Objectives: Using baseline survey data, the study examined self-efficacy of 381 lower-income parents who had opportunities to build financial assets for their children by opening college savings accounts in a human service agency. Methods: Of the study sample, 62% of the parents decided to open accounts while 38% did not. Structural equation modeling for multiple group models was performed. Results: There were few demographic differences between the groups. The measurement model was invariant across parents who decided or did not decide to open accounts, fitting the data for both account openers and nonopeners, w 2 (450, n ¼ 381) ¼ 804.60, p < .001, root mean square error of approximation [RMSEA] ¼ .070(.063À.073), Non-Normed Fit Index [NNFI] ¼ 0.93, Comparative Fit Index [CFI] ¼ 0.93). Conclusions: Results lend some support to institutional perspective on saving. Implications for policy and practice are discussed.
Mapping the perspectives of low-income parents in a children's college savings account program
Children and Youth Services Review - CHILD YOUTH SERV REV, 2010
Policies and programs designed to help low-income families save and build assets for developmental uses such as higher education, homeownership, and entrepreneurship are emerging and growing globally. This study uses participatory concept mapping techniques to explore perspectives of low-income parents in a children's college savings account program in a large US city. Participants in this study worked together to generate data on effective components of child savings account (CSA) programs. They then sorted these CSA components into conceptual groups reflecting their perspectives on which of the program elements were related to one another. Finally, participants were asked to rate the importance of each CSA component. Findings suggest that parents view CSA components that: (1) demonstrate respect for parents and (2) enhance accountability as being particularly effective and important elements of matched saving programs. While much more research is needed, particularly with low...
Social science research, 2015
Experience of material hardship can adversely affect a family's ability to make long-term investments in children's development. We examine whether material hardship is associated with one indicator of such investments: participation in a tax-advantaged college savings plan (529 plan). Data for this study come from the SEED for Oklahoma Kids (SEED OK) experiment, an intervention that offers Child Development Accounts with financial incentives to encourage the accumulation of college savings for children from the time of their birth. Results show that material hardship is negatively associated with 529-plan participation, and this association varies by treatment status. At all levels of material hardship, treatment-group mothers are more likely to hold accounts than control-group mothers. These findings suggest that CDAs can be a useful policy tool to support families' financial preparation for college.
The Effects of a dedicated education savings account on children's college graduation
Economics of Education Review, 2015
Emerging research in the asset-building field suggests economic resources in general are associated with positive educational outcomes. However, there is little empirical evidence specifically concerning the effects of parents holding a dedicated education savings account on their children's attainment of associate's and bachelor's degrees. There is a need for more replication studies to help confirm that the emerging evidence is accurate and applicable with different populations and under different situations. This study helps fill this research gap by using data from the National Longitudinal Survey of Youth 97. Data are analyzed using propensity score adjusted regression techniques. Results show if parents create a savings account earmarked for their children's education, the children are more likely to attain college degrees. These findings suggest that current asset-based policies and programs that encourage lowand moderate-income parents to create and hold education savings accounts can also serve as a policy strategy to help improve higher educational attainment of children from lower income households.
Sociology Mind
The researchers adopted a positivist approach to qualitative research, hypothesizing that the interviews would reveal positive parental expectations and development of college-saver identity among Harold Alfond College Challenge (HACC) participants. HACC is an opt-out children's savings account asset intervention that begins at birth for children born in Maine. For this study, data were obtained through structured interviews of 22 families. Most parents in HACC describe having positive educational expectations and having developed a college-saver identity. More research is needed.
Children's College As A Saving Goal
2000
This study investigates determinants of having saving for children's education as a goal. Based on 1992 Survey of Consumer Finance data, 28% of the households with children under 18 have saving for children's education as a goal. More educated parents are more likely to have college saving as a goal than otherwise similar less educated parents. Asian and Hispanic parents were more likely to have college saving as a goal than similar White non-Hispanic parents. Parents with a retirement account were more likely to have college saving as a goal, but no other financial variables were significant.
Young Children\u27s Perceptions of College and Saving: Potential Role of Child Development Accounts
2009
This paper explores young children\u27s perceptions and expectations about attending college, and the potential influence of a savings program on shaping children\u27s perceptions about paying for college. As part of a four-year study of a school-based college savings program called “I Can Save”, this paper uses qualitative evidence from interviews conducted in second and fourth grades with a diverse group of 51 children. Findings suggest that most of the children in the study have a general understanding of college and have begun a process of considering higher education. Further, children in “I Can Save” are more likely than a comparison group of children to perceive that savings is a way to help pay for college
Young children's perceptions of college and saving: Potential role of Child Development Accounts
Children and Youth Services Review, 2010
This paper explores young children's perceptions and expectations about attending college, and the potential influence of a savings program on shaping children's perceptions about paying for college. As part of a four-year study of a schoolbased college savings program called "I Can Save", this paper uses qualitative evidence from interviews conducted in second and fourth grades with a diverse group of 51 children. Findings suggest that most of the children in the study have a general understanding of college and have begun a process of considering higher education. Further, children in "I Can Save" are more likely than a comparison group of children to perceive that savings is a way to help pay for college.