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Hands-On Learning to Build Financial Habits: Research and Resources on Child Savings

To accompany Hands-On Learning to Build Financial Habits: Federal Resources to Encourage 

School-Based and Youth Savings Programs, this document is intended to provide information on 

non-governmental research and resources that may be useful to financial institutions, state, local, 

or tribal government officials, teachers and school leaders, and others interested in establishing 

such a program. 

This document includes a description publicly available websites, reports, research papers, and 

other readings on child savings that may help practitioners learn about best practices and 

techniques. Please note that these resources have not been supported or endorsed by the 

Financial Literacy and Education Commission (FLEC) and may not be an exhaustive list of 

resources on this topic. 

For additional research and resources, visit www.mymoney.gov and the FLEC Research 

and Data Clearinghouse on www.mymoney.gov.

Websites 

 CFED

o Children’s Savings 101: http://cfed.org/programs/csa/childrens_savings_101/

o Children’s Savings Directory: http://cfed.org/programs/csa/directory/

 San Francisco Office of Financial Empowerment: http://sfofe.org/programs/k-to-c

 University of Kansas Assets and Education Initiative: http://save4ed.com/

Reports, Research Papers and other Readings

● Reid Cramer, Rachel Black, Justin King. 2014. Children's Savings Accounts 

ResearchPractice, and Implications for Policy Design. New America Foundation. 

http://assets.newamerica.net/sites/newamerica.net/files/policydocs/CSAEvidenceImplications

FINAL6_14.pdf

Summary: This paper reviews the research foundations of Children’s Savings Accounts

(CSAs), which may be of importance to policymakers and advocates. Having access to 

savings generally – and particularly in the child’s name- are associated with a wide range 

of positive outcomes, including better academic performance, higher rates of college 

entry, and higher rates of college completion. A national collective platform for 

children’s savings could provide a structure to help families grow the savings that make a 

meaningful difference in the lives of children and improve their prospects for economic 

mobility in addition to supporting a culture of savings, personal responsibility, and 
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increased ownership and investment. A short description of the legislative history of CSA

proposals and some key initiatives at the national, state, and municipal levels are 

discussed. Key policy considerations to be addressed include participation, intended uses, 

and account features. Examples of each consideration are explored and critically 

evaluated. 

● Assets and Education Initiative. 2013. Building Expectations, Delivering Results: AssetBased Financial Aid and the Future of Higher Education. In W. Elliott (Ed.). Biannual report 

on the assets and education field. Lawrence, KS: Assets and Education Initiative (AEDI). 

http://save4ed.com/wp-content/uploads/2013/11/Full-Report.pdf

Summary: Children’s Savings Accounts (CSAs) represent acknowledgement of 

children’s savings as a strategy for improving children’s well-being. CSAs could also be 

focused on the purpose of funding higher education. Forty percent of voters surveyed 

indicated that making education more affordable should be a top priority for government 

and 58 percent of voters surveyed stated that the most effective use of CSAs would be to 

help families save for college. Research suggests that asset ownership can positively 

change the way children and families think about and prepare for college. Additionally, 

movement away from a dependency on student debt may aid future U.S. economic 

competitiveness. An asset-based approach may work by increasing the students’ stake in 

their own educational futures, thereby making persistence and success more likely. CSAs 

may be also considered a promising college-funding strategy to a broad socioeconomic

audience, in addition to more traditional financial aid products. 

● Terri Friedline and Nik Schuetz. 2014. Investing in Children; Child Development Accounts 

as an Early Childhood Intervention. New America Foundation and University of Kansas' 

School of Social Welfare. 

http://www.newamerica.org/downloads/Friedline 

SchuetzCDAs_as_Early_Childhood_Intervention.pdf

Summary: The positive outcomes of Child Development (savings) Account (CDA) 

ownership and development can be supported by suitable policy design and by providing 

proper, intentional preparation to children about their CDAs. Families need opportunities 

to make short and long-term economic investments in their children in addition to their 

developmental and educational investments. This paper discusses CDAs as having the 

potential to complement other currently available childhood intervention programs such 

as pre-kindergarten, child development centers, and Head Start. Early childhood 

interventions make the short-term investments families may be unable to afford. 

Interventions such as CDAs may contribute to closing educational and economic 

advancement gaps between children in and out of poverty that widen across time if left 

unattended. 

● Johnson, E., & Sherraden, M. S. 2007. From Financial Literacy to Financial Capability 

among Youth. J. Soc. & Soc. Welfare, 34, 119.

http://csd.wustl.edu/Publications/Documents/WP06-11.pdf
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Summary: Typically, a financial institution partners with one or more schools to allow 

youth to open and make deposits into savings accounts. Credit unions, in particular, have 

been successful in establishing these types of at-school programs. To develop financial 

capability, it is suggested that financial education include access to financial institutions, 

possibly with savings incentives. This opportunity will provide a benefit to children 

whose families do not use banks or other mainstream financial institutions. Implementing 

a national policy for kids’ accounts with universal financial education would send a clear 

message of commitment to the financial success and well-being of future generations. 

● Kilara, Tanaya, and Alexia Latortue. 2012. Emerging Perspectives on Youth Savings. Focus 

Note 82. Washington, D.C.: CGAP.

https://www.cgap.org/sites/default/files/CGAP-Focus-Note-Emerging-Perspectives-onYouth-Savings-Aug-2012.pdf

Summary: This paper focuses on the opportunities and challenges of offering savings 

services to youth from the perspectives of policy makers and financial service providers 

working in developing countries. The premise behind the policy case for offering savings 

accounts to youth is straightforward: youth savings can promote asset-building, instill 

good financial habits, and improve a country’s overall gross savings rate. The business 

case for financial service providers is gaining loyal, long-term customers who will use a 

range of products over their lifecycles. The paper provides several practical 

considerations for policy makers and providers when targeting the youth market. While 

more data on the social impact of youth savings is needed, policy makers can take a testand-learn approach to reducing barriers for the private sector to deliver youth savings.

Coordination among government ministries is important in this regard, ideally within a 

comprehensive youth policy. In regard to financial services providers, there also exists a 

similar need for innovation and experimentation around understanding the youth market

and whether this customer segment is profitable in the long run.

● Rochelle Howard, Liana Humphrey, Carl Rist, Barbara Rosen & Leigh Tivol. 2010. From 

Piggy Banks to Prosperity: A Guide to Implementing Children's Development Accounts

(Updated). CFED. September 

http://cfed.org/assets/pdfs/Piggy_Banks_to_Prosperity.pdf

Summary: This reference guide is designed for anyone interested in establishing Child 

Savings Accounts (CSAs) including community-based organizations, community leaders 

and practitioners, financial institutions, municipal or state agencies, schools, and other 

organizations that serve children and youth. Experiences of the national Saving for 

Education, Entrepreneurship and Downpayment (SEED) Initiative - which was developed

to explore and assess the potential of CSAs as a program, product, and policy - are 

studied to present recommendations and lessons to future CSA program creators. This 

paper discusses specific aspects of developing a CSA initiative such as program structure, 

management, design issues, and working with community partners.
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● Sherraden, M. S., Johnson, L., Guo, B., & Elliott, W. 2011. Financial Capability in Children: 

Effects of Participation in a School-based Financial Education and Savings Program. Journal 

of Family & Economic Issues, 32(3), 385-399.

http://csd.wustl.edu/Publications/Documents/WP09-16.pdf

Summary: A growing number of states require financial education standards in public 

schools; however, it is less common in elementary school than in high school. Research 

has shown that although young children’s financial understanding is unsophisticated, they 

can understand concepts at a very young age which form the foundation of more 

sophisticated understanding in later years. This study finds that young children in an 

elementary school setting benefit significantly from a combined financial education and 

savings program regardless of parent education and income. The program involved 

opening a savings account, regular visits to the bank, making deposits, and monitoring 

their accounts. The study further suggests that even very young children enjoy and can 

learn economic and financial concepts if those concepts are conveyed in an engaging 

manner. This result is in line with several previous studies that found elementary school 

programs designed to increase financial capability yielded positive results.