Why Invest in a CSA?
Children with CSA’s are more likely to attend college and graduate.
In comparison with similar children without CSAs, children with these accounts are:
- 3 times more likely to attend college.
- 4 times more likely to graduate.
Children’s savings improve early child development and future financial capability.
- Children with a CSA at birth score better on socio-emotional development indicators than other children without a CSA. These positive effects occur regardless of the amount or frequency of deposits made by parents into the child’s account.
- Families with children who have a seeded, matched savings account at birth save more for college than families of children who did not receive these accounts.
- Students learn about money and how to manage it. Attitudes toward saving and financial institutions also improve.
Children with college savings have greater college expectations.
- Children begin thinking about their futures, including college attendance, as early as elementary school.
- Having an account for college helps children build positive expectations about college.
- Fourth graders with a CSA were three times as likely to mention savings as an important element in paying for college.
- Children aged 12 to 18 with a savings account for college had higher math scores and were twice as likely to expect to go to college than other children without a CSA.
Children with college savings do better academically.
- Children in low-wealth families with school savings have higher math scores than those without school savings.
- CSAs reduce the gap between the expectation of attending college after high school and actual college enrollment.
- Young adults who had an account designated for college were two times more likely to be “on course” to complete college than those who did not.