How parents decide to participate and save in their children's asset-building accounts: Implications for practice, policy, and theory

Asset-based social welfare programs focus on helping low to moderate income citizens accumulate wealth in the form of home ownership, savings, small businesses, and higher education. Individual development accounts, savings accounts in which account holders' deposits are matched, are a vehicle often used in these programs. In a national demonstration of children's savings accounts (individual development accounts for children) parents participated in focus groups to discuss how they decided to enroll in this asset-building program, how they decided to open accounts for their children, and how they saved in these accounts. Findings from this study have implications for assetbuilding policy and practice, and institutional theories of saving.

Research Highlights► Parents believed asset-building was a good opportunity for their children. ► Many parents had difficulty finding money to deposit. ► Many parents had limited understanding of financial processes. ► Institutional structures may be able to make a difference for low-income savers.