Young children's perceptions of college and saving: Potential role of Child Development Accounts

Abstract

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.

Staying on Course: The Effects of Savings and Assets on the College Progress of Young Adults

“…Therefore, it appears that some youth as young as 12 are beginning to put away some money for college. This is consistent with previous findings (Elliott et al 2010). In a study of 51 fourth-grade youth in a college savings program, Elliott et American Journal of Education al.…”

“…Age 12 is the first year that the CDS asks youth if they have savings of their own. However, evidence from behavioral economics suggests that youth may benefit from saving as early as age 12 and that somewhere between the ages of 6 and 12, they begin to grasp the relationship between saving and future opportunity (see e.g., Elliott et al 2010;SonugaBarke and Webley 1993). Moreover, we find that savings rates among youth below age 16 (23.0 percent) and youth age 16 or older (22.5 percent) are roughly equal.…”

Toward a Children’s Savings and College-Bound Identity Intervention for Raising College Attendance Rates: A Multilevel Propensity Score Analysis

“…People pay attention to things that they believe are the causes of things that matter to them. As mentioned in the introduction, Elliott, Sherraden, et al (2010) find that children see savings as a way to pay for college. Another way of stating this finding is that owning savings may be seen as a cause of being able to attend college.…”

“…What makes ownership important is what children perceive that ownership gives them control over -for e.g., a stake in financing college. In a study of 51 fourth grade children in a college savings program, Elliott, Sherraden, Johnson, and Guo (2010) find that children who are in the school savings program are statistically more likely to perceive that saving is a way to help pay for college than children in a comparison group.…”

Cultural Capital Efficacy in Parental and Student Aligned Expectations for Postsecondary Matriculation

“…Family economic assets signal to students early the association of savings with access to higher education in terms of capabilities and opportunities (Elliott et al, 2010). Rising college costs are often associated with disparities in college enrollments and have led to estimates as high as two million qualified students in the U.S. over the next decade who will not be able to attend college as a result of those costs (Elliot, 2009).…”