Comparing Two Waves of Data for Taiwan's Saving Accounts for Future Education and Development of Children and Youth: An Analysis of Program Impact

Background and Objective: In 2017, the Taiwan implemented the “Saving Accounts for Future Education and Development of Children and Youth,” the first anti-poverty policy that establishes a personal savings account for every child from low-income families and provides monthly deposits until the child turns eighteen. Since its launch in 2017, about 60% (N = 26,726) of eligible children (N = 44,627) opened an account by the end of 2022. To evaluate the effectiveness of the program, surveys were conducted among eligible families every four years. The initial data collection occurred in 2019, followed by a second round in 2023. This study aimed at tracking participants from the first survey and carrying out a second wave of follow-up surveys, incorporating sample supplementation. The objective of this study was to compare the differences in experiences of participants across the two waves. It aims at identifying strengths, weaknesses, and areas for potential improvement in the program's design and implementation.

Methods: In the first wave, those parents or legal guardians who have opened accounts for their children (786 participants) and those who have not (168 participants) were randomly selected. Sampling was stratified by city/county and low/middle-low-income level. The second wave was designed based on the outcomes of the first survey, adding additional participants. The second wave included 1,018 parents or guardians who had opened accounts for their children and 1,009 who had not participated in the program. Face-to-face interviews were done by social workers to collect data regarding their family’s economic conditions, employment status, parents' working conditions, parents' feelings of optimism and depression, educational expectations for their children, and administrative information. Among them, the variables of economic situation and emotional feeling are measured by 4-level Likert questions.

Results: Data analysis revealed no significant disparities between account holders and non-holders in terms of economic challenges, employment status, parenting stress, parental expectations for their children, and parent-child relationships in the first wave. However, non-account holders perceived their economic circumstances to be worse compared to those who had opened an account. In the second wave of data analysis, a comparative study was conducted between participants who opened an account and those who did not. The findings revealed that factors such as economic pressure, attitudes towards savings, and parent-child relationships exhibited relatively positive outcomes, with statistically significant differences. Between two waves of data, contrary to expectations, the aspect of depression presented an anomaly, deviating negatively from the anticipated outcomes. Despite a decrease in family economic pressure, the persistent adverse effects on self-perception and mental health call for targeted interventions.

Conclusions and Implications: The program positively impacts improving families' economic conditions and educational investments but also shows areas needing further improvement, including policy promotion, social work support, financial education, and providing stable employment opportunities. When continuing to promote the program, it is recommended that financial literacy education should be strengthened to help parents reduce family financial pressure; it is agreed that the concept of asset accumulation and the benefits of future education for children should also be continued.