An Examination of Parental College Expectations’ Mediating Role between Children’s Savings Accounts and Children’s Educational Attainment by Income Level

Abstract

Even though ownership of a Children's Savings Account (CSA), children's academic achievement, and parental college expectations are potentially key components for closing the inequality gap in education, the interdependence of these elements is not yet fully understood. Guided by the Theory of Planned Behavior, we utilize structural equation modeling (SEM) in this cross-sectional study to examine the mediating role of parental college expectations on the relationship between ownership of a Harold Alfond College Challenge (HACC) account and parents' perception of children's math and reading abilities by the level of household income. Although it is currently a universal, opt-out CSA program available to all babies born in Maine, HACC started in 2008 as an opt-in program, and it is this timeframe that is the focus of the current study. SEM models utilizing survey data from a sample of Maine parents reveal a positive association between the Alfond Grant enrollment and parental college expectations among low-to-moderate income families. Moreover, parental expectations are found to be a complete mediator between having a HACC account and parental perceptions of children's math ability (but not reading ability) among low-to-moderate income students. No findings were significant for high income families. Correlational evidence from this study suggests that HACC may complement schools' academic objectives in Maine, particularly about improving parents' perceptions of their child's math performance among low-to-moderate income families. This study highlights the need for more rigorous research on HACC and its potential effects on children's educational attainment.