Center on Assets, Education, and Inclusion

  1. Accumulating assets, debts in young adulthood: Children as potential future investors

    Child Development Accounts (CDA) aim to open savings accounts in childhood as a way to lay a foundation for building assets in young adulthood and beyond. Mainstream banks may be key partners in opening the accounts in which children can build assets. While children may have limited savings to invest initially, they may increasingly invest over time by accumulating assets and debts through mainstream banks. Mainstream banks may benefit from children's increasing investments. This paper uses propensity score weighted, longitudinal data from the Panel Study of Income Dynamics and its supplements to examine savings, assets, debt, and net worth accumulation of young adults and whether or not they accumulate more when they have savings accounts as children. Young adults accumulate a median of $1000 in savings accounts, $4600 in total assets, $965 in debt (excluding student loans), and $4000 in net worth (excluding student loans). Young adults accumulate more savings and total assets when they have savings accounts as children. They accumulate less debt and more net worth when their households accumulate high net worth.

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    Citation

    Friedline, T., & Song, H. (2013). Accumulating assets, debts in young adulthood: Children as potential future investors. Children and Youth Services Review, 35(9), 1486–1502.

    Authors

    Friedline, Terri, Song, Hyun-a

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

  2. Children as potential future investors: Accumulating assets, accumulating debts in young adulthood

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    Citation

    Friedline, T., & Song, H. (2013). Children as potential future investors: Accumulating assets, accumulating debts in young adulthood (Report II of III). Lawrence, KS: University of Kansas, School of Social Welfare, Assets & Education Initiative.

    Authors

    Friedline, Terri, Song, Hyun-a

    Financial Inclusion Report Year 2013

  3. Children as potential future investors: Accumulating assets, accumulating debts in young adulthood

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    Citation

    Friedline, T., & Song, H. (2013). Children as potential future investors: Accumulating assets, accumulating debts in young adulthood (Report II of III). Lawrence, KS: University of Kansas, School of Social Welfare, Assets & Education Initiative.

    Authors

    Friedline, Terri, Song, Hyun-a

    Children's Savings Account Report Year 2013

  4. Improving college progress among low- to moderate-income (LMI) young adults: The role of assets

    Little is known about the impact of assets on low- to -moderate-income (LMI) young adults’ college progress. In this study college progress refers to young adults who were currently enrolled in, or who have a degree from, a 2-year college or a 4-year college. Findings from this study suggest LMI young adults with school savings were more than three times as likely to be on course than LMI young adults without any savings or who had savings but had not designated any of it for school. In regard to net worth, we found no evidence to suggest that higher amounts of negative net worth were statistically significant; however, high positive net worth was associated with LMI young adults college progress. Findings suggest policy instruments designed to assist adolescents to save such as universal Child Development Accounts may be a simple and effective strategy for helping to keep LMI young adults on course.

    Citation

    Elliott, W., Constance-Huggins, M.,* and Song, H.* (2013). Improving college progress among low- to moderate-income (LMI) young adults: The role of assets. Journal of Family and Economic Issues 34, 382-399.

    Authors

    Elliott III, William, Constance-Huggins, Monique, Song, Hyun-a

    Children's Savings Account Journal Article Year 2013

  5. Small-dollar accounts, children's college outcomes and wilt

    This is paper four of four in the Small-Dollar Children's Savings Account series, which studies the relationship between children's small-dollar savings accounts and college enrollment and graduation. This series of papers examines three important research questions using different subsamples: (a) Are children with savings of their own more likely to attend or graduate from college? (b) Does dosage (i.e., having no account, only basic savings, savings designated for school [of less than $1, $1 to $499, or $500 or more]) matte? And (c) is having savings designated for school more predictive than having basic savings alone? In this study we use a sample of children who expect to graduate college prior to leaving high school as a way of looking at wilt. In this study “wilt” occurs when a child who expects to graduate from college while in high school does not graduate college by 2009. Using propensity score weighted data from the Panel Study of Income Dynamics (PSID) and its supplements we created multi-treatment dosages of savings accounts and amounts to answer the previous questions. We find that in the aggregate children who expect to graduate college prior to leaving high school (high-expectation children) and who designate savings for school of $500 or more are about two times more likely to graduate college than high-expectation children with no account. High-expectation low- and moderate-income (LMI) children who designate school savings of $1 to $499 and $500 or more are about three times more likely to graduate college than LMI children with no account. Further, high-expectation black children who have school savings of $500 or more are about two and half times more likely to graduate from college than their counterparts with no savings account.

    Citation

    Elliott, W., Song, H-a, and Nam, I. (2013). Small-dollar accounts, children's college outcomes and wilt. Children and Youth Services Review, 35 (3), p. 535-547.

    Authors

    Elliott III, William, Song, Hyun-a, Nam, Ilsung

    Children's Savings Account Journal Article Year 2013

  6. Small-dollar children’s saving accounts and children's college outcomes by income level

    This is paper two of four in the small-dollar children's savings account series in this issue that examines the relationship between children's small-dollar savings accounts and college enrollment and graduation. This series of papers uses different subsamples to examine three important research questions: (a) Are children with savings of their own more likely to attend or graduate from college; (b) Does dose (no account, only basic savings, savings designated for school of less than $1, $1 to $499, or $500 or more) matter; and (c) Is designating savings for school more predictive than having basic savings alone. Using propensity score weighted data from the Panel Study of Income Dynamics and its supplements we created multi-treatment doses of savings accounts and amounts to answer these questions separately for children from low- and moderate-income (below $50,000; n = 512) and high income ($50,000 or above; n = 345) households. We find that low- and moderate-income children may be more likely to enroll in and graduate from college when they have small-dollar savings accounts with money designated for school. A low- and moderate-income child who has school savings of $1 to $499 prior to reaching college age is over three times more likely to enroll in college and four times more likely to graduate from college than a child with no savings account. These findings lead to policy implications that are also discussed.

    Citation

    Elliott, W., Song, H-a, and Nam, I. (2013). Small-dollar children’s saving accounts and children's college outcomes by income level. Children and Youth Services Review, 35 (3), p. 560-571.

    Authors

    Elliott III, William, Song, Hyun-a, Nam, Ilsung

    Children's Savings Account Journal Article Year 2013

  7. The effects of parents’ school savings on college expectations and Hispanic youth’s four-year college attendance

    This study examines the influence of parents' college savings for their child on Hispanic youth's four-year college attendance. Using hierarchical generalized linear modeling (HGLM), we analyze a sample of 2750 Hispanic youth from the Education Longitudinal Survey (ELS: 2002/2006). Findings suggest that parents' college savings are significantly associated with Hispanic youth's four year college attendance. However, once parents' college expectations are added to the model, the significant effect of college savings disappears. Mediating tests show that parents' college expectations and youth's college expectations mediate the relationship between parents' college savings and Hispanic youth's attendance at a four-year college.

    Citation

    Song, H.* and Elliott, W. (2012). The effects of parents’ school savings on college expectations and Hispanic youth’s four-year college attendance. Children & Youth Services Review. 34(9), 1845-1852.

    Authors

    Song, Hyun-a, Elliott III, William

    Children's Savings Account Journal Article Year 2012

  8. The role of assets in improving college attainment among Hispanic immigrant youth in the U.S.

    Despite the importance of higher education, Hispanic immigrant youth still have far lower college attainment rate than whites in the U.S. Existing studies show the significant role of household assets on educational attainment even after controlling for income. Thus, this study examines the role of homeownership and school savings on Hispanic immigrant youth's college attendance and graduation. Findings show that homeownership is a significant positive predictor of Hispanic immigrant youth's college attendance and graduation, but parent school savings is not a significant predictor. Policy and practice implications discussed.

    Citation

    Song, H. and Elliott, W. (2011). The role of assets in improving college attainment among Hispanic immigrant youth in the U.S. Children and Youth Services Review, 33(11), 2160-2167.

    Authors

    Song, Hyun-a, Elliott III, William

    Children's Savings Account Journal Article Year 2011