For this New Year, won’t you consider changing a child’s life by gifting to a savings account, or opening an account for a child that does not already have one? The effects of having a savings account is tremendous.
Studies at the Center for Social Development at Washington University in St. Louis show a strong correlation between a children’s savings account and behavior. The studies noted that having a saving account increases a child’s chance of graduating from high school, and increases their chance of going to college, better educational performance, and lifelong effects, such as owning a home or business investments.
• Children with savings dedicated for college education are four times more likely to attend college (Elliot and Beverly 2010)
• Having school savings might be as closely associated with college outcomes as well the amount in it. Children with $1 to $499 designated for school are 2.5 times more likely to enroll in and graduate from college than children with no account (Elliot, Song and Nam 2013)
• Savings and other financial assets are a consistent predictor of college graduation, even after controlling for variables such as income (Zhan and Sherraden 2009).
It is true that many other variables affect a child, in particular, the child’s environment as a whole. However, having a savings account affects a child’s future and potential so much that won’t you make a New Year’s resolution to contribute to a child’s savings account.