Children's Savings Accounts have been demonstrated in research to affect educational outcomes. Researchers theorize that these effects occur through a process known as institutional facilitation, whereby individuals’ attitudes, expectations, and behaviors are shaped through interactions with supportive institutions.Elliott, W. (2012). We save, we go to college. (Creating a Financial Stake in College, Report III). Washington, DC: New America Foundation; St. Louis, MO: Washington University, Center for Social Development, Available at http://assets.newamerica.net/sites/newamerica.net/files/policydocs/Elliott_III_final1.4.12.pdf. In this case, when children experience reinforcement of the expectation of college graduation, their drive towards academic achievement is increased and they begin to act in ways consistent with their ‘college-bound’ identity.Oyserman, D. (2013). Not Just Any Path: Implications of Identity-Based Motivation for Disparities in School Outcomes. Economics and Education Review. In turn, this leads to more savings, which further strengthens expectations and achievement.Elliott, W., Choi, E. H., Destin, M. and Kim, K. (2011). The age old question, which comes first? A simultaneous test of children’s savings and children’s college-bound identity. Children and Youth Services Review, 33(7), 1101-1111. Conversely, when low-income students learn that their families, schools, neighborhoods, and our financial aid system are less-than-equipped to support their educational outcomes, their self-efficacy (‘I can do’ belief) may be compromised,Bandura, A. (1997). Self-efficacy: The exercise of control. New York: W.H. Freeman resulting in disengagement from school performance.
