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Math Achievement and Children’s Savings: Implications for Child Development Accounts

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Abstract

In this study, we propose that children who have a savings account may be more likely to have higher math scores than children without a savings account. We find that children’s savings accounts are positively associated with math scores. Children with savings accounts on average score almost nine percent higher in math than children without a savings account. Further, results suggest that children’s savings accounts fully mediate the relationship between household wealth and children’s math scores. However, household wealth moderates the mediating relationship. We find math scores of low-wealth children increase by 2.13, middle-wealth children’s increase by 4.36, while high-wealth children’s increase by 6.59 points. Policy implications are discussed.

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Notes

  1. NAEP—the nation’s report card—provides a common set of standards for assessing performance.

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Authors and Affiliations

  1. The University of Pittsburgh School of Social Work, 4200 Fifth Avenue, 2226 Cathedral of Learning, Pittsburgh, PA, 15260, USA

    William Elliott, Hyunzee Jung & Terri Friedline

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  1. William Elliott
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  2. Hyunzee Jung
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  3. Terri Friedline
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Correspondence to William Elliott.

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Elliott, W., Jung, H. & Friedline, T. Math Achievement and Children’s Savings: Implications for Child Development Accounts. J Fam Econ Iss 31, 171–184 (2010). https://doi.org/10.1007/s10834-010-9185-4

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