Financial Capability and Asset Accumulation for Children's Education: Evidence From an Experiment of Child Development Accounts

Publication Date



On the basis of a theoretical framework of financial capability, this study investigates the roles of financial access and financial knowledge in savings and asset accumulation for children's postsecondary education. We use data from SEED for Oklahoma Kids (N = 2,704), a statewide policy experiment offering Child Development Accounts (CDAs) to treatment participants. This study employs quantile regressions with two dependent variables: savings amount (net deposits made by caregivers of children) and total asset amount (the sum of savings, financial incentives offered by the experiment, and investment earnings). Results identify positive and statistically significant interactions between treatment status and financial knowledge, suggesting that access to CDAs moderates the association between financial knowledge and asset accumulation. Providing empirical support for the theory of financial capability, the findings call for interventions that enhance financial knowledge, expand financial access, and improve asset accumulation for all children.

Document Type



Financial Inclusion


Asset Building

Original Citation

Huang, J., Nam, Y., Sherraden, M., & Clancy, M. (2015). Financial capability and asset accumulation for children's education: Evidence from an experiment of Child Development Accounts. Journal of Consumer Affairs, 49(1),127–155. doi:10.1111/joca.12054


SEED for Oklahoma Kids


529, asset accumulation, assets, asset ownership, asset holding, CDA, child development, Central Provident Fund, child savings, college savings, college savings plan, financial capability, wealth, SEED OK, post-secondary education, savings, saving, financial knowledge, financial literacy