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Child Development Accounts, parental savings, and parental educational expectations: A path model

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  • Kim, Youngmi
  • Huang, Jin
  • Sherraden, Michael
  • Clancy, Margaret

Abstract

Parents' expectations for their children's education, and efforts to foster suitably positive expectations, are worthy of policy attention. Previous research indicates that early saving for a child's postsecondary education can foster and sustain high parental expectations, yet little is known about the operative mechanisms. This study presents analyses from a randomized experiment with Child Development Accounts (CDAs), a policy to encourage early financial investments for education and to shape parents' expectations concerning their young children's educational goals. Our research provides key evidence on whether parental account holding for children's college (a) has a positive impact on parents' expectations for their children's educational attainment and (b) mediates the CDA's effect on their educational expectations at an early stage in their child's development. We employ data from the SEED for Oklahoma Kids (SEED OK) experiment, the first randomized social experiment to test universal and progressive CDAs. We conduct a path analysis and a supplemental analysis with marginal structural models (n=2160). We find that holding a college-savings account has a significant effect on parents' educational expectations for their children and that whether one holds an account mediates the effect of CDAs on such expectations. Findings suggest that CDAs may promote early parental financial investment and high expectations. Research and policy implications are discussed.

Suggested Citation

  • Kim, Youngmi & Huang, Jin & Sherraden, Michael & Clancy, Margaret, 2017. "Child Development Accounts, parental savings, and parental educational expectations: A path model," Children and Youth Services Review, Elsevier, vol. 79(C), pages 20-28.
    • Handle: RePEc:eee:cysrev:v:79:y:2017:i:c:p:20-28
    DOI: 10.1016/j.childyouth.2017.05.021
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    References listed on IDEAS

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    1. Kim, Youngmi & Sherraden, Michael & Clancy, Margaret, 2013. "Do mothers’ educational expectations differ by race and ethnicity, or socioeconomic status?," Economics of Education Review, Elsevier, vol. 33(C), pages 82-94.
    2. Zhan, Min & Sherraden, Michael, 2011. "Assets and liabilities, educational expectations, and children's college degree attainment," Children and Youth Services Review, Elsevier, vol. 33(6), pages 846-854, June.
    3. Dynarski, Susan, 2004. "Who Benefits From the Education Saving Incentives? Income, Educational Expectations and the Value of the 529 and Coverdell," National Tax Journal, National Tax Association;National Tax Journal, vol. 57(2), pages 359-383, June.
    4. Zhan, Min, 2006. "Assets, parental expectations and involvement, and children's educational performance," Children and Youth Services Review, Elsevier, vol. 28(8), pages 961-975, August.
    5. Oyserman, Daphna, 2013. "Not just any path: Implications of identity-based motivation for disparities in school outcomes," Economics of Education Review, Elsevier, vol. 33(C), pages 179-190.
    6. Elliott III, William, 2009. "Children's college aspirations and expectations: The potential role of children's development accounts (CDAs)," Children and Youth Services Review, Elsevier, vol. 31(2), pages 274-283, February.
    7. Yunju Nam & Youngmi Kim & Margaret Clancy & Robert Zager & Michael Sherraden, 2013. "Do Child Development Accounts Promote Account Holding, Saving, and Asset Accumulation for Children's Future? Evidence from a Statewide Randomized Experiment," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 32(1), pages 6-33, January.
    8. Kim, Youngmi & Sherraden, Michael, 2011. "Do parental assets matter for children's educational attainment?: Evidence from mediation tests," Children and Youth Services Review, Elsevier, vol. 33(6), pages 969-979, June.
    9. Williams Shanks, Trina R. & Kim, Youngmi & Loke, Vernon & Destin, Mesmin, 2010. "Assets and child well-being in developed countries," Children and Youth Services Review, Elsevier, vol. 32(11), pages 1488-1496, November.
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    Cited by:

    1. Fang, Shu & Huang, Jin & Wu, Shiyou & Jin, Minchao & Kim, Youngmi & Henrichsen, Courtney, 2020. "Family assets, parental expectation, and child educational achievement in China: A validation of mediation analyses," Children and Youth Services Review, Elsevier, vol. 112(C).
    2. Haotian Zheng & Elizabeth Harris & William Elliott & Megan O’Brien, 2023. "The Role of Children’s Savings Accounts in Promoting Savings for College Among Welfare Recipients: The Case of Harold Alfond College Challenge (HACC)," Journal of Family and Economic Issues, Springer, vol. 44(2), pages 285-296, June.
    3. Fang, Shu & Huang, Jin & Curley, Jami & Birkenmaier, Julie, 2018. "Family assets, parental expectations, and children educational performance: An empirical examination from China," Children and Youth Services Review, Elsevier, vol. 87(C), pages 60-68.
    4. Chen, Zibei & Elliott, William & Wang, Kaipeng & Zhang, Anao & Zheng, Haotian, 2020. "Examining parental educational expectations in one of the oldest children’s savings account programs in the country: The Harold Alfond College Challenge," Children and Youth Services Review, Elsevier, vol. 108(C).
    5. Wang, Haining & Cheng, Zhiming & Smyth, Russell, 2022. "Parental misbeliefs and household investment in children's education," Economics of Education Review, Elsevier, vol. 89(C).
    6. Kang, Yankun & Liang, Shuyuan & Bai, Caiquan & Feng, Chen, 2020. "Labor contracts and parents’ educational expectations for children: Income effect or expected effect?," Children and Youth Services Review, Elsevier, vol. 118(C).
    7. Prince Donkor & Ya Ding & Gideon Adu-Boateng, 2019. "The Effect of Parental Economic Expectation on Gender Disparity in Secondary Education in Ghana: A Propensity Score Matching Approach," Sustainability, MDPI, vol. 11(23), pages 1-17, November.
    8. Shaojie Qi & Hao Liu & Fengrui Hua & Xiangshu Deng & Zheng Zhou, 2022. "The Impact of Household Assets on Child Well-being: Evidence from China," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(5), pages 2697-2720, October.

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