Do parental assets matter for children's educational attainment?: Evidence from mediation tests

This study investigates (1) the effects of parental assets on children's educational attainment from high school completion to college degree attainment, and (2) mediating roles played by parental involvement, child's educational expectations, and child's self-esteem. The study sample (N = 632) is drawn from the Child and Young Adult data supplement to the National Longitudinal Study of Youth 1979. Results indicate that parental assets are associated with children's later educational attainment. Financial assets and home-ownership are significantly associated with high school completion and college attendance. In addition, family income becomes non-significant when specific measures of assets and liabilities are taken into account. Non-financial assets and income are significant predictors of college degree attainment. Children's educational expectations mediate the effect of financial assets on high school completion. Empirical evidence provides support for asset-building programs and policies designed to promote long-term educational attainment.

Research Highlights
► Findings indicate that family economic resources, particularly assets, are significantly predictive of every level of educational attainment, and there are some variations across types of educational outcomes as well as economic resources.
► The asset effects may outweigh the effects of family income in predicting high school completion and college attendance.
► Children's educational expectations mediate the effect of financial assets on high school completion.