Universal accounts at birth: building knowledge to inform policy

Objective: This article summarizes the design, implementation, and early findings of a statewide randomized experiment of Child Development Accounts (CDAs). The SEED for Oklahoma Kids experiment (SEED OK) is testing a concept for a universal, progressive asset-building policy with potential for nati...

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Main Authors: Sherraden, Michael, Clancy, Margaret, Nam, Yunju, Huang, Jin, Kim, Youngmi, Beverly, Sondra, Mason, Lisa, Wikoff, Nora, Schreiner, Mark, Purnell, Jason
Format: Article
Published: University of Chicago Press 2015
Subjects:
Online Access:https://eprints.nottingham.ac.uk/46622/
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author Sherraden, Michael
Clancy, Margaret
Nam, Yunju
Huang, Jin
Kim, Youngmi
Beverly, Sondra
Mason, Lisa
Wikoff, Nora
Schreiner, Mark
Purnell, Jason
author_facet Sherraden, Michael
Clancy, Margaret
Nam, Yunju
Huang, Jin
Kim, Youngmi
Beverly, Sondra
Mason, Lisa
Wikoff, Nora
Schreiner, Mark
Purnell, Jason
author_sort Sherraden, Michael
building Nottingham Research Data Repository
collection Online Access
description Objective: This article summarizes the design, implementation, and early findings of a statewide randomized experiment of Child Development Accounts (CDAs). The SEED for Oklahoma Kids experiment (SEED OK) is testing a concept for a universal, progressive asset-building policy with potential for national application. CDAs can start as early as birth, providing structured opportunities (e.g., financial access, information, incentives) to encourage asset accumulation for postsecondary education and other developmental purposes. Theory and evidence suggest that CDAs can improve educational outcomes, especially among disadvantaged youth. Method: Participating in a rigorous randomized controlled design, primary caregivers of children born in Oklahoma in 2007 completed a baseline telephone survey before random assignment to the treatment group (n = 1,358) or control group (n = 1,346); these caregivers completed a followup survey 4 years later. For children in the treatment group, the SEED OK experiment automatically opened an Oklahoma 529 College Savings Plan (OK 529) account with a $1,000 initial deposit. In addition, low- and moderate-income families in the treatment group were eligible for a savings match for deposits to their own OK 529 accounts. Results: Findings indicate that CDAs can be implemented universally in a full population to increase the accumulation of college assets. The CDA in SEED OK greatly reduces disparities in OK 529 asset accumulation associated with socioeconomic characteristics. The CDA also has positive effects on parental educational expectations for children, maternal depressive symptoms, and children’s social-emotional development. Conclusions: In contrast to college savings programs that require parents to open an account, SEED OK’s universal, automatic, and progressive CDA model gives all children the opportunity to benefit from college account and asset ownership.
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spelling nottingham-466222020-05-04T17:20:16Z https://eprints.nottingham.ac.uk/46622/ Universal accounts at birth: building knowledge to inform policy Sherraden, Michael Clancy, Margaret Nam, Yunju Huang, Jin Kim, Youngmi Beverly, Sondra Mason, Lisa Wikoff, Nora Schreiner, Mark Purnell, Jason Objective: This article summarizes the design, implementation, and early findings of a statewide randomized experiment of Child Development Accounts (CDAs). The SEED for Oklahoma Kids experiment (SEED OK) is testing a concept for a universal, progressive asset-building policy with potential for national application. CDAs can start as early as birth, providing structured opportunities (e.g., financial access, information, incentives) to encourage asset accumulation for postsecondary education and other developmental purposes. Theory and evidence suggest that CDAs can improve educational outcomes, especially among disadvantaged youth. Method: Participating in a rigorous randomized controlled design, primary caregivers of children born in Oklahoma in 2007 completed a baseline telephone survey before random assignment to the treatment group (n = 1,358) or control group (n = 1,346); these caregivers completed a followup survey 4 years later. For children in the treatment group, the SEED OK experiment automatically opened an Oklahoma 529 College Savings Plan (OK 529) account with a $1,000 initial deposit. In addition, low- and moderate-income families in the treatment group were eligible for a savings match for deposits to their own OK 529 accounts. Results: Findings indicate that CDAs can be implemented universally in a full population to increase the accumulation of college assets. The CDA in SEED OK greatly reduces disparities in OK 529 asset accumulation associated with socioeconomic characteristics. The CDA also has positive effects on parental educational expectations for children, maternal depressive symptoms, and children’s social-emotional development. Conclusions: In contrast to college savings programs that require parents to open an account, SEED OK’s universal, automatic, and progressive CDA model gives all children the opportunity to benefit from college account and asset ownership. University of Chicago Press 2015-10-07 Article PeerReviewed Sherraden, Michael, Clancy, Margaret, Nam, Yunju, Huang, Jin, Kim, Youngmi, Beverly, Sondra, Mason, Lisa, Wikoff, Nora, Schreiner, Mark and Purnell, Jason (2015) Universal accounts at birth: building knowledge to inform policy. Journal of the Society for Social Work and Research, 6 (4). pp. 541-564. ISSN 1948-822X asset building Child Development Accounts child savings accounts college savings 529 college savings plans experiment SEED for Oklahoma Kids wealth child development education http://www.journals.uchicago.edu/doi/10.1086/684139 doi:10.1086/684139 doi:10.1086/684139
spellingShingle asset building
Child Development Accounts
child savings accounts
college savings
529 college savings plans
experiment
SEED for Oklahoma Kids
wealth
child development
education
Sherraden, Michael
Clancy, Margaret
Nam, Yunju
Huang, Jin
Kim, Youngmi
Beverly, Sondra
Mason, Lisa
Wikoff, Nora
Schreiner, Mark
Purnell, Jason
Universal accounts at birth: building knowledge to inform policy
title Universal accounts at birth: building knowledge to inform policy
title_full Universal accounts at birth: building knowledge to inform policy
title_fullStr Universal accounts at birth: building knowledge to inform policy
title_full_unstemmed Universal accounts at birth: building knowledge to inform policy
title_short Universal accounts at birth: building knowledge to inform policy
title_sort universal accounts at birth: building knowledge to inform policy
topic asset building
Child Development Accounts
child savings accounts
college savings
529 college savings plans
experiment
SEED for Oklahoma Kids
wealth
child development
education
url https://eprints.nottingham.ac.uk/46622/
https://eprints.nottingham.ac.uk/46622/
https://eprints.nottingham.ac.uk/46622/