Research from America has revealed that the link between children’s savings accounts and success at college or university is growing. Three separate studies all revealed a link between a child with a savings account in their name, and success in higher education.
Margeret Clancy from the US Centre for Social Development (CSD) revealed, “This research underscores the importance of policies and programs that help Americans of all income levels to save for college,” before adding, . “That’s why the College Savings Initiative includes innovative public policy and reforms to 529 college savings plans. The ultimate goal is to increase post-secondary education access and completion rates, particularly among lower-income students.”
“Previous research has stopped short of assessing relationships between assets and college completion, and very limited research has examined the associations between different types of assets and liabilities and college success,” Clancy added.
Further studies have backed up the findings and suggest that it’s not income, but assets in the child’s name, like savings accounts that contribute to success at college.
Parents wishing to set up savings accounts for their children are spoilt for choice at the moment, with the Junior ISA on its way in November and a variety of Tax Exempt Children’s Savings plans, Junior Bonds and Young Saver accounts available.