Understanding Education Financing and the Role of Education Savings Accounts

• In Event: 63.085 - MTCC Roundtable Session 26
  In Roundtable Session: 63.085-12 - International Discussions on Education Issues

Abstract

Increasing families are expected to bear the cost of post-secondary education. This study draws on the institutional theory of saving to understand how savings account ownership enables families to save for educational purposes. Multilevel logistic modeling was applied to data from the Global Financial Inclusion survey and World Development Indicators to assess the link between account ownership and the probability of saving for education. Results show that the likelihood of saving for education is higher for individuals with savings accounts compared to those without accounts. Greater access to formal savings services may be a viable strategy to accumulate resources for education. Easy access to formal savings services would help individuals and families prepare financially for future education expenses.

Authors

• Moses Okumu, University of Toronto

• David Ansong, University of North Carolina - Chapel Hill

• Isaac Koomson, University of New England - Australia