Early savings for children's higher education: A comparison between savers and non-savers in a Child Development Account program

This study examined economic pressure, parenting stress, and personal mastery factors among N = 235 lower income parents who had the opportunity to save for their children's future higher education in a children's development account program. Bivariate analyses and structural equation modeling (SEM) were used to test the differences between early savers and non-savers. There were some sociodemographic differences between the groups; however, the overall SEM was invariant between the groups. Data suggest that specific case management services may be critical to help lower-income parents save for their children. Further research needs to identify institutional aspects and household characteristics that explain saving among this poorer households.

Research highlights
► We measure three well-being constructs among parents with early savings and those without in a savings accounts program for children’s education.
► There exists socio-demographic differences among the groups.
► The overall structural equation model was invariant among the groups.
► Case management services may help some parents save in such programs.
► Specific aspects of the institutional theory on saving should be identified that can help parents save.