A study that examined the effects of opening savings accounts for 1,100 newborns across 12 communities found the accounts not only helped families of all income levels build assets for children, but also seemed to spur positive behavior and attitudes.
The collaborative study from Washington-based nonprofits such as the Corporation for Enterprise Development and the New America Foundation, among others, reports the findings of the 10-year Saving for Education, Entrepreneurship, and Downpayment initiative, or SEED, which tested the effect of matched savings accounts and financial education for children and their families.
It found the creation of such accounts helped parents build self-esteem and hope, and increased family discussions with children about finances and college.
