Saving for Success: Financial Education and Savings Goal Achievement in Individual Development Accounts
13 Pages Posted: 2 Feb 2012
Date Written: January 31, 2012
Using microdata from the American Dream Demonstration, the current study examines factors associated with savings and savings goal achievement (indicated by a matched withdrawal) among participants of individual development account (IDA) programs. Multinomial logit results show that hours of participation in financial education programs, higher matched caps, prior use of a savings account, and greater educational attainment are each associated with a greater likelihood of savings and savings goal achievement. IDA programs need to maximize available resources, particularly financial education, to assist participants in achieving savings goals.
Keywords: financial education, IDAs, low-income, savings
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