Contributions of qualitative research to understanding savings for children and youth

This paper explores contributions of qualitative research to saving theory for children, youth, and parents in children's development account (CDAs) programs. It brings together findings from three studies: (1) elementary school age children saving for college, (2) youth transitioning from foster care saving for education and other purposes, and (3) mothers saving for their toddlers’ future college. Findings suggest that children, youth, and parents find CDAs helpful in accumulating savings. CDAs motivate and facilitate saving in ways that reflect developmental stages. Accumulating savings has positive economic and psychological meaning for CDA participants. CDAs overcome some obstacles in saving for the three groups, but other barriers remain, especially income flows, debt, and emergencies.

► The paper compares three Child Development Account programs.
► Findings reflect differences across developmental stages.
► Respondents report favorable perceptions of savings plans.
► Students report positive effects on their views of the future.
► Respondents with low incomes find it difficult to set money aside in savings.