Small-dollar children's savings accounts and children's college outcomes by income level

Elliott, William; Song, Hak Jun; Nam, In-Soo

doi:10.1016/j.childyouth.2012.12.003

Cited by 16 publications

(4 citation statements)

References 20 publications

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“…In Uganda, the geographical focus of our study, Child Development Accounts (CDAs) in particular, along with financial education workshops and mentorship, have been associated with improved school performance (Curley, Ssewamala, & Han, ; Ssewamala & Ismayilova, ; Ssewamala et al., ), reductions in sexual risk‐taking behavior (Ssewamala, Han et al., ), decreases in depressive symptomology (Ssewamala et al., ; Wang, Ssewamala, & Han, ), and improved mental health functioning among adolescents affected by AIDS (Han, Ssewamala, & Wang, ; Ssewamala, Han, & Neilands, ). In the United States, CDAs have demonstrated positive effects on children's socioemotional development (Huang et al., ), students’ math scores (Elliot, Jung, & Friedline, ), and college enrollment and completion (Elliot, Song, & Nam, ).…”

Section: Microsavingsmentioning

confidence: 99%

Effects of Financial Incentives on Saving Outcomes and Material Well‐Being: Evidence From a Randomized Controlled Trial in Uganda

Wang¹,

Ssewamala²,

Neilands³

et al. 2018

J Policy Anal Manage

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The use of savings products to promote financial inclusion has increasingly become a policy priority across sub-Saharan Africa, yet little is known about how families respond to varying levels of savings incentives and whether the promotion of incentivized savings in low-resource settings may encourage households to restrict expenditures on basic needs. Using data from a randomized controlled trial in Uganda, we examine: 1) whether low-income households enrolled in an economic-empowerment intervention consisting of matched savings, workshops, and mentorship reduced spending on basic needs and 2) how varied levels of matching contributions affected household savings and consumption behavior. We compared primary school-attending AIDS-affected children (N = 1,383) randomized to a control condition with two intervention arms with differing savings-match incentives: 1:1 (Bridges) and 1:2 (Bridges PLUS). We found that: 1) 24 months post-intervention initiation, children in Bridges and Bridges PLUS were more likely to have accumulated savings than children in the control condition; 2) higher match incentives (Bridges PLUS) led to higher deposit frequency but not higher savings in the bank; 3) intervention participation did not result in material hardship; and 4) in both intervention arms, participating families were more likely to start a family business and diversify their assets.

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Section: Microsavingsmentioning

confidence: 99%

Effects of Financial Incentives on Saving Outcomes and Material Well‐Being: Evidence From a Randomized Controlled Trial in Uganda

Wang¹,

Ssewamala²,

Neilands³

et al. 2018

J Policy Anal Manage

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“…Further supporting doubts about the importance of income, evidence suggests that a 25% or greater decrease in income positively predicts college completion (Elliott, 2013a). Similarly, recent evidence that accounts for variation in family assets suggests income is negatively related to college completion among all (Elliott, 2013b), black (Friedline, Elliott, & Nam, 2013), and low-to-moderate income children (Elliott, Song, & Nam, 2013). This negative relationship is counterintuitive, but could reflect a number of patterns, including: 1) the propensity of low-income students to enroll in two-year degree programs, which are easier and less costly to complete; 2) the financial challenge college poses to families whose income is just slightly too high to qualify for means-tested financial aid; and 3) the ability of higher-income parents (who possess more information about the financial aid process) to "game" the system, purposely limiting their income to increase aid eligibility.…”

Section: Parental Incomementioning

confidence: 85%

The Effect of Wealth Inequality on Higher Education Outcomes: A Critical Review

Rauscher¹,

Elliott²

2014

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American society reflects considerable class immobility, much of which may be explained by the wide gaps in college completion rates between economically advantaged and disadvantaged groups of students. First, we discuss the factors that lead to unequal college completion rates and introduce assets as an explanation often ignored by stratification scholars. We then discuss how a legacy of wealth inequality has led to wealthy students having an advantage at the financial aid bargaining table over low-income and minority students. We conclude by discussing how assetbuilding policies such as children's savings accounts offer a potential policy strategy to alter the distributional consequences of the current financial aid system and help level the playing field.

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“…However, the aggregate increases in student loan debt and rising college enrollment do not mean that the use of student loans has boosted college attainment. Family and parental contributions toward the expenses of educational investment, including even small amounts in a child's savings account, have been identified as the most significant influences on both college enrollment and graduation (Elliott et al., ; Keane & Wolpin, ). While borrowing constraints affect the decision to pursue higher education, for those students who accumulate student loan debt, completing the degree is the strongest predictor of not defaulting (Gross et al., ).…”

Section: Summary and Discussionmentioning

confidence: 99%

“…A few studies have argued the important role of college savings (Elliott & Nam, ; Elliott, Song, & Nam, ). When parents open college savings accounts, students were more likely to report paying for their college attendance with family contributions (Elliott & Nam, ).…”

Section: Theories Related To Student Loan Debtmentioning

confidence: 99%

Understanding Student Loan Decisions: A Literature Review

Cho

Kiss

2015

Family & Consum Sci Res J

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Because of the continuing increase in college costs and the need for a college education, the use of student loans has affected many individuals and households in the United States. Researchers and policy-makers need a comprehensive review of literature to understand the determinants and consequences of student loans. This article provides information on the current trends in student loans, reviews the effect of education loans on college enrollment and career decisions, as well as the effects on personal life decisions. Implications for future research related to methodology, information, and the decision-making process for an at-risk population are offered.Tuition and fees at colleges and universities continue to rise more rapidly than the rate of inflation. The rate of increase was 17% at private nonprofit 4-year colleges and almost 30% at public institutions between

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Small-dollar children's savings accounts and children's college outcomes by income level

Cited by 16 publications

References 20 publications

Effects of Financial Incentives on Saving Outcomes and Material Well‐Being: Evidence From a Randomized Controlled Trial in Uganda

Effects of Financial Incentives on Saving Outcomes and Material Well‐Being: Evidence From a Randomized Controlled Trial in Uganda

The Effect of Wealth Inequality on Higher Education Outcomes: A Critical Review

Understanding Student Loan Decisions: A Literature Review

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