Beyond the Balance: A Qualitative Study of How Incentive Structure Fosters Engagement in CollegeBound Saint Paul

• In Event: Asset-Building Polices, Economic Security, and Individual Development Over a Life Course

Abstract

This study examines how the incentive structure in CollegeBound Saint Paul, a city-wide college savings program (CSA), fosters the engagement of low-income families as they plan for their children’s future. We focus on active incentives – opportunities that allow families to earn additional contributions to their child’s CSA account by taking certain actions, such as attending financial workshops or child’s developmental check-ups. While CSA programs have largely aimed to promote financial inclusion through mechanisms like automatic enrollment and matched savings, active incentives represent a qualitatively distinct approach. Though modest in monetary value, these incentives require intentional engagement and reward families for regularly interacting with their accounts and remaining aware of new opportunities. To explore how active incentives foster engagement in practice, we conducted semi-structured interviews with 26 randomly selected participants between February and May 2024. Our findings indicate that active incentives influence saving practices in both direct and indirect ways. First, by engaging with these incentives, families began to develop routine behaviors such as regularly checking their accounts and increased awareness of additional saving opportunities. Second, by allowing families to “earn” financial resources through actions benefiting their children and themselves, these incentives can alleviate parental stress and strengthen long-term commitments to saving. Finally, because some are tied to local community events, active incentives can foster a sense of community among parents who face similar financial challenges but remain committed to their child’s future.

Authors

• Subin Min, University of Michigan Ann Arbor
  Presenting Author

• Megan Seana O'Brien, University of Michigan Ann Arbor
  Non-Presenting Co-Author

• Amanda Jones-Layman, Neumann University
  Non-Presenting Co-Author