Asset building. Do savings incentives contribute to the academic success of low-income children?

Abstract

“WILL – Educare al futuro” was a national pilot program carried out between 2019 and 2023 to evaluate the impact of an incentivized savings account on the educational outcomes of children from low-income families. Targeted at 10-year-old children, the program encouraged families to save small weekly amounts (from 1 to 6 euros), up to a maximum of 1,000 euros over four years. Savings were quadrupled if used for documented educational expenses. In addition to the savings account and the matching funds, families received educational, financial, and school guidance support. The evaluation, conducted using an experimental design on 576 students across four areas (Florence, Southern Sardinia, Teramo, and Turin), showed that families in the treatment group saved more than those in the control group, without adverse effects on their ability to meet daily expenses. By the end of the project, the average amount saved was approximately 700 euros, with a total expenditure of around 3,000 euros over three years, mainly on digital technology, sports, and books. The program also raised the educational aspirations of parents with ISEE below the median and increased the likelihood that their children would achieve high grades and remain enrolled in upper secondary school. The findings confirm the effectiveness of educational savings programs in tackling educational poverty.

Speaker

Loris Vergolini, Università di Bologna

Discussant

Beatrice Caniglia, Università di Trento