Immigrant Latino Families Saving Against Great Odds: The Case of CSAs and the Prosperity Kids Program

Children’s savings account programs are interventions that seek to engage disadvantaged children and their families in early college saving, cultivate college-saver identities, and reduce disparities in educational and economic outcomes. Existing research has revealed positive effects of CSAs on children’s outcomes, but questions remain about how and for whom CSAs facilitate these outcomes. This study uses account data from 493 accountholders and findings from interviews with 50 participants to examine asset accumulation and savings experiences among mostly low income, Latino families in New Mexico’s Prosperity Kids CSA program. One-third of the families made a deposit into their child’s account designated as “savers” with a median total contribution of $123 and a median account balance, including initial seed deposit, of $345. Longer duration of program enrollment and fewer number of unexcused absences predicted savers status. Qualitative findings highlight emerging college-saver identities, viewed through the framework of identity-based motivation, understood to include salience, normalization of difficulty, and group congruence. Qualitative interview data further suggest that initial seed money, deposit incentives, and withdrawal restrictions were important influences on participants’ saving. These findings suggest CSA features that may encourage positive savings outcomes for economically disadvantaged households and, then, that may have implications for future CSA policy development.