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The effects of a dedicated education savings account on children's college graduation

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  • Nam, Jaehyun
  • Ansong, David

Abstract

Emerging research in the asset-building field suggests economic resources in general are associated with positive educational outcomes. However, there is little empirical evidence specifically concerning the effects of parents holding a dedicated education savings account on their children's attainment of associate's and bachelor's degrees. There is a need for more replication studies to help confirm that the emerging evidence is accurate and applicable with different populations and under different situations. This study helps fill this research gap by using data from the National Longitudinal Survey of Youth 97. Data are analyzed using propensity score adjusted regression techniques. Results show if parents create a savings account earmarked for their children's education, the children are more likely to attain college degrees. These findings suggest that current asset-based policies and programs that encourage low- and moderate-income parents to create and hold education savings accounts can also serve as a policy strategy to help improve higher educational attainment of children from lower income households.

Suggested Citation

  • Nam, Jaehyun & Ansong, David, 2015. "The effects of a dedicated education savings account on children's college graduation," Economics of Education Review, Elsevier, vol. 48(C), pages 198-207.
    • Handle: RePEc:eee:ecoedu:v:48:y:2015:i:c:p:198-207
    DOI: 10.1016/j.econedurev.2015.07.004
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    References listed on IDEAS

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    Cited by:

    1. Messacar, Derek & Frenette, Marc, 2019. "Education savings plans, matching contributions, and household financial allocations: Evidence from a Canadian reform," Economics of Education Review, Elsevier, vol. 73(C).
    2. David Ansong & Gina Chowa & Rainier Masa & Mathieu Despard & Michael Sherraden & Shiyou Wu & Isaac Osei-Akoto, 2019. "Effects of Youth Savings Accounts on School Attendance and Academic Performance: Evidence from a Youth Savings Experiment," Journal of Family and Economic Issues, Springer, vol. 40(2), pages 269-281, June.
    3. Samson John Mgaiwa, 2021. "Fostering Graduate Employability: Rethinking Tanzania’s University Practices," SAGE Open, , vol. 11(2), pages 21582440211, April.
    4. Ansong, David & Okumu, Moses & Hamilton, Eric R. & Chowa, Gina A. & Eisensmith, Sarah R., 2018. "Perceived family economic hardship and student engagement among junior high schoolers in Ghana," Children and Youth Services Review, Elsevier, vol. 85(C), pages 9-18.
    5. Catherine A. Manly & Ryan S. Wells & Genia M. Bettencourt, 2017. "Financial Planning for College: Parental Preparation and Capital Conversion," Journal of Family and Economic Issues, Springer, vol. 38(3), pages 421-438, September.

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    More about this item

    Keywords

    Asset building; Educational attainment; Educational finance; Economic and social mobility;
    All these keywords.

    JEL classification:

    • A23 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Graduate
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-

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