Want Your Kid to Go to College? Set Up a Savings Account.

Dollars & Sense on 05.25.11


You don't have to start a college fund for your kids in order for them to end up pursuing higher education, says new research from the College Savings Initiative -- but if they have a bank account of their own, no matter how little is in it, they're six times more likely to go to college, reports StrollerDerby.

The average bank account in the study contained just $400, and the researchers took into account the external factors, leaving them with one theory: "It's helping them to be thinking of college, to have it on their mind in a more concrete way than simply saying, 'I expect to go to college,'" said William Elliot III, Ph.D., who worked on the study. "They've taken some actions, they've got a savings account, they're saving some money. Positive expectations aren't quite enough."

So just giving your children the feeling that they're in control of their future could be an important step toward helping them achieve their goals -- and the extra $400 doesn't hurt, either.

 

How are you teaching your kids to think about money?

 

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Photo: Carly Jane1/Creative Commons

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