Center on Assets, Education, and Inclusion

  1. Preventive policy strategy for banking the unbanked: Savings accounts for teenagers

    Citation

    Friedline, T., Despard, M., & Chowa, G. (2015). Preventive policy strategy for banking the unbanked: Savings accounts for teenagers? Journal of Poverty.

    Authors

    Friedline, Terri, Despard, Mathieu R., Chowa, Gina A.N.

    Financial Inclusion Journal Article Year 2015

  2. Testing an asset-building approach for young people: Early access to savings predicts later savings

    A major hypothesis of asset-building is that early access to savings accounts leads to continued and improved educational and economic outcomes over time. This study asks whether or not young adults (ages 18-22) in 2007, particularly among lower income households, are significantly more likely to own savings accounts and to accumulate more savings when they have access to savings accounts at banking institutions as adolescents (ages 13-17) in 2002. We investigate this question using longitudinal data (low-to-moderate income sample [LMI; N = 530]; low-income sample [LI; N = 354]) from the Panel Study of Income Dynamics and its supplements. Results from propensity score weighting and bivariate probit estimates support this hypothesis. Asset-building policies that extend early access to savings accounts may improve savings outcomes for young people from lower income households, which hopefully affords them with the economic resources needed to lead productive and satisfying lives.

    Citation

    Friedline, T., Elliott, W., and Chowa, G. (2013). Testing an asset-building approach for young people: Early access to savings predicts later savings. Economics of Education Review, 33(1), pp. 31-51.

    Authors

    Friedline, Terri, Elliott III, William, Chowa, Gina A.N.

    Children's Savings Account / Financial Inclusion Journal Article Year 2013

  3. Toward a children’s savings and college-bound identity intervention for raising college attendance rates

    It has been suggested that children’s savings programs will be more effective if they are combined with strategies to build children’s college-bound identities. In this study we use a multi-level treatment approach to propensity score analysis to test this proposition. Findings suggest that children who have savings and are certain they will graduate from a four-year college are more likely to attend college than their counterparts. Given this, we suggest that children’s savings policies designed to increase college attendance rates will be more effective if they include strategies for building children’s college-bound identity and college-bound identity programs will be more effective if they are linked to children’s savings programs.

    Citation

    Elliott, W., Chowa, G. and Loke, V. (2011). Toward a children’s savings and college-bound identity intervention for raising college attendance rates: A multilevel propensity score analysis. Sociology Mind, 1(4). 192 –205.

    Authors

    Elliott III, William, Chowa, Gina A.N., Loke, Vernon

    Children's Savings Account Journal Article Year 2012

  4. Transforming Wealth: Using the Inverse Hyperbolic Sine (IHS) and Splines to Predict Youth’s Math Achievement

    Wealth is increasingly included alongside income for predicting youth’s educational outcomes. However, the natural log and categorical transformations may not always be appropriate for adjusting for skewness given wealth’s unique properties. We introduce an alternative transformation—the inverse hyperbolic sine (IHS)—for simultaneously dealing with skewness and accounting for wealth’s unique properties. We also explore non-linearity and accumulation thresholds by combining IHS transformed wealth with splines. We predict youth's math achievement with two data sources: (1) U.S. households from the Panel Study of Income Dynamics and (2) Ghanaian households from the YouthSave Ghana Experiment. IHS transformed wealth relates to youth’s math achievement similarly when compared to categorical and natural log transformations. In both U.S. and Ghanaian households, we find evidence of non-linearity between wealth and youth’s math achievement. We also find evidence for wealth accumulation thresholds that relate to youth’s math achievement. In an aggregate sample of U.S. households, accumulating zero and negative net worth is significantly related to decreases in youth’s math achievement whereas accumulating moderate values of positive net worth is significantly related to increases in youth’s math achievement. Among black and low-to-moderate income U.S. households, holding net worth sufficient to remain above the poverty line for three months is significantly related to youth’s improved math achievement. In Ghanaian households, accumulating assets between the 25th and 50th percentiles is related to a significant increase in youth’s math achievement.

    Authors

    Friedline, Terri, Masa, Rainier D., Chowa, Gina A.N.

    Children's Savings Account Report Year 2012

  5. A multi-group structural equation model (SEM) examining asset holding effects on educational attainment by race and gender

    This article considers the processes through which parents' and children's wealth may influence children's academic achievements, and examines how these processes may vary across race and gender. It starts by reviewing existing research on the wealth-academic achievement relationship, and the role of college expectations in explaining this relationship. The study used 2002 data from the Panel Study of Income Dynamics (PSID), a national annual survey of US individuals and households, to examine wealth effects in relation to children’s maths and reading scores. The analysis sample included black and white children between the ages of 12 and 18 who were enrolled in a public school, giving a sample size of 1063. The data were analysed using multi-group structural equation modelling (SEM) to examine wealth effects on maths and reading scores by gender and by race. The results suggest that there are important statistical differences across race and gender. For example, children's school savings predict maths scores among white children but not black children. Net worth is a positive predictor of black males' maths scores but a negative predictor of black females'. In the case of income, the results find that it is directly related to black females' maths scores but not black males'. In general, the findings suggest that liquid forms of wealth (i.e., forms of wealth that are easily converted into cash) may be better predictors of children's academic achievement than net worth.

    Citation

    Elliott, W., Jung, H.*, Kim, K., and Chowa, G. (2010). A multi-group structural equation model (SEM) examining asset holding effects on educational attainment by race and gender. Journal of Children and Poverty, 16(2), 91-121.

    Authors

    Elliott III, William, Jung, Hyunzee, Kim, K, Chowa, Gina

    Children's Savings Account Journal Article Year 2010