Universal and Progressive Child Development Accounts: A Policy Innovation to Reduce Educational Disparity

Child Development Accounts (CDAs) aim to increase college completion rates among disadvantaged youth by helping youth see themselves as college bound. This article summarizes findings about the implementation and impacts of universal, progressive CDAs, with emphasis on outcomes for disadvantaged children. Data come from a large randomized experiment. CDAs positively affect ownership of college savings accounts and assets, educational expectations, and other indicators of well-being. Disadvantaged children especially benefit from having a CDA. If CDAs prove to have long-term effects on educational expectations, college preparation, and educational achievement, then a national universal, progressive CDA could reduce educational disparities.