Social and Behavioral Sciences Commons^™

Saving And Asset Accumulation Among Low-Income Families With Children In Idas, Michal Grinstein-Weiss, Kristen Wagner, Fred M. Ssewamala

Center for Social Development Research

Research indicates that low-income families with children have many motives to save, however, the costs of raising children, low wage employment, means tested programs, and the need for child care make it difficult for them to save. Using data from the American Dream Demonstration (n=1,801), this study examines saving performances of low-income families with children in a matched savings program – Individual Development Accounts (IDAs). The results indicate that households with children in IDAs can save when they are provided structured opportunities. In addition, this study finds that institutional factors, not merely individual characteristics, are highly associated with IDA saving …