Matched College Savings Account Programs for Children: Examining the Feasibility in Baltimore City

BACKGROUD AND PURPOSE:   A college degree is more important than ever in today’s competitive job market and economic landscape, yet sky-rocketing tuition and the threat of onerous student debt pose huge barriers for children, especially children in low- and moderate-income households. Matched college savings account (CSA) programs are increasing in popularity throughout the nation as a critical anti-poverty tool to assist these children and their families as they aspire to college dreams of attendance and completion. This paper describes a study that tested the feasibility of launching a pilot program with a matched CSA program in two Baltimore City elementary/middle schools.  Given the importance of the community in the success of CSAs, this study assessed perspectives about a future program from school administrators and teachers, parents, and children in an effort to start “where the community is” and accurately assess interest, ideas for program success, and community engagement.

METHODS:  The researchers employed qualitative methods with purposive sampling to conduct ten focus groups with educators, parents, and students, respectively.  Data was transcribed and analyzed using open coding to identify themes emerging from the data. Additional data was collected through environmental scans of the schools’ communities, along with written surveys of parent and educator focus group participants. The questions and surveys were designed to explore in-depth the perceptions and attitudes regarding the potential to develop and offer a matched CSA program for elementary/middle-school children in Baltimore City, starting with these two schools. College/career aspirations were also explored, as well as attitudes about and challenges of saving money, especially in a troubled economy.

RESULTS:  The researchers identified nine themes that revolved around the challenges of savings; strategies to save even small amounts; the need for guidance, information, and classes on financial education and practical money matters; ways to establish and sustain the college mind-set; the power and influence of role models; differences of opinions among stakeholders; the role of family and community and children’s sense of responsibility to it; the use of incentives and matches; and steps for long-term success, including personalized attention and a high-touch approach to savings and planning for college, trust-building, best age to start a CSA, modes of communication with stakeholders, enrollment strategies, and innovative ways of promotion. Results from the environmental scans showed promising community partners with which to collaborate, as well as the challenges in a city containing deep pockets of poverty. Written survey results indicated the extent of and comfort with banking, tax preparation, and other financial practices.

CONCLUSIONS AND IMPLICATIONS:  By using a multi-informed, stakeholder approach to data collection, results reflect viewpoints from primary end-users of a CSA program. Conducting a detialed feasibility study of a potential CSA led to better end results for this pilot program now underway. Methods for integrating research findings into direct practice as the CSA pilot is being formulated will be discussed. The benefits of community-based research program such as this one will also be discussed as a mechanism to increase engagement in innovative community programs.