Center on Assets, Education, and Inclusion

Children’s Savings Accounts (CSAs) are interventions that seek to build assets for children to use as long-term investments (Goldberg, 2005; Sherraden, 1991), particularly for postsecondary education. Provided through financial institutions, CSAs generally include progressive features, such as initial seed deposits, financial incentives for attaining certain academic benchmarks, or matches for savings deposits (e.g., Elliott & Lewis, 2014). Distinct among financial aid policies for their cultivation of improved outcomes throughout children’s lives, CSAs aim to equip children, particularly those who are disadvantaged, with assets that have demonstrated associations with academic achievement (Elliott, Kite, O’Brien, Lewis, & Palmer, 2016) and educational attainment (Elliott, 2013; Elliott & Beverly, 2011). CSAs also connect households to mainstream financial institutions (Friedline, 2014), activating families to save for their children’s futures and their later financial well-being.

This brief begins by discussing some key areas where the Republican-selected witnesses agree with the eight key principles for designing a national CSA program. Next, four areas where additional convergence would be helpful are discussed. The brief concludes by summarizing the points of convergence, how they align with principles in the 401Kids legislation, and the eight key principles identified by the asset building field.

In this talk I want to make the point that CSAs have become much more than a financial vehicle for individuals to save in. This matters. First, it matters for understanding how to assess whether CSA programs are effective. Second, it matters for combating the myth that building wealth through CSAs continues to be primarily about personal saving. This myth has placed a roadblock between CSA and Baby Bonds movements being able to coalesce around a common financial infrastructure for building wealth for children and their families.

This report summarizes a selection of data from the second administration of the Wabash Early Award Scholarship Program (EASP) student survey. The survey for the second round included two new blocks of questions designed to assess: (a) student awareness of the Early Award Scholarship Program and (b) student college planning activities. A summary of findings from these two new blocks is presented here.