Using Children’s Savings Accounts and Early Awards to Build College Savings among Welfare Recipients: The Case of Promise Scholars

Prior research indicates that welfare receipt negatively affects households’ planning and saving for offspring’s post-secondary education. Recently, a growing body of literature suggests that Children’s Savings Accounts (CSAs) are effective in increasing the saving rate of American households. Findings of this study suggests that welfare receipt is negatively associated with saving for college; Promise Scholars is positively associated with saving for college; and the effect of Promise Scholars on saving for college exists among welfare recipients. Research and policy implications are discussed.