Discussion
This study provides new information about saving in CDAs by examining data from the first largescale
demonstration of CDAs in the United States. Two savings outcomes—AQNS (quarterly
measure, excludes incentives paid to accounts by SEED) and accumulation (cumulative measure,
includes incentives paid to accounts by SEED) are examined, along with the associations between
these outcomes and incentives. Findings provide preliminary empirical support for policies that
facilitate savings for children through institutional mechanisms. While mean AQNS of $29.58 might
be considered modest, it indicates that some families can and will save in CDAs with institutional
supports such as those studied here. In addition, the $1,518.24 that each participant accumulated on
average as an investment for the future is not trivial. It would cover over 60 percent of tuition and
fees for one year at a typical community college in 2008-2009 (College Board, 2008).
Findings also provide insight into whether incentives are likely to matter in CDA programs. In
SEED, the three financial incentives—initial deposit, benchmark cap, and match limit—appear to
have distinct associations with AQNS and accumulation.
The initial deposit is placed into an account as a lump sum soon after a participant enrolls in the
program. This incentive does not have an association with AQNS, but is positively and strongly
associated with accumulation. Regarding AQNS, we might hope that an initial deposit would spur
new saving, but findings from this study do not support this. The positive relationship between
initial deposit and accumulation is expected, since initial deposits were placed directly into
sample compositions: (1) a sample excluding those who dropped out of the program, and (2) a
sample including only participants under 18 years old. Results from these additional analyses are not
substantially different from those reported in this study.3