According to Prosperity Now, research suggests investing in a CSA has long-term benefits for students and parents.
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.
Go here for more resources if you do not qualify for this CSA program.