A Look Behind the Numbers: State of the Childrens Savings Field - - PowerPoint PPT Presentation

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A Look Behind the Numbers:

State of the Children’s Savings Field

March 14, 2018

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Welcome

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Housekeeping

• This webinar is being recorded and

will be available online and emailed to those who registered

• All attendees are muted to ensure

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Our mission is to ensure everyone in our country has a clear path to financial stability, wealth and prosperity.

(formerly CFED)

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Join today to help achieve our vision of

1.4 million Children’s Savings Accounts by 2020!

Campaign for Every Kid’s Future

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• Highlight findings from the CSA Program Survey
• Share commonalities/differences among CSA

programs across the country

• Provide design ideas to organizations considering

CSAs in the future

Objectives of Today’s Webinar

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• Overview of CSA Program Survey
• Participating CSA Program Criteria
• Highlights from 2017 CSA State of the Field
• Discussion
• Audience Q&A
• Next Steps and Close

Today’s Agenda

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Today’s Speakers

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• Children’s Savings team conducts an annual

program survey

• Survey fielded August-September 2017
• Analysis includes 54 programs using responses

and publicly available information In addition, interviews with CSA programs conducted November-December 2017 as part of CFPB field scan

Prosperity Now's CSA Program Survey

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• Long-term savings or investment accounts for

children (0-18 years of age)

• Used for asset building purpose, usually

postsecondary education expenses

• Provide incentives to build savings (e.g., seed

deposit and matches)

• Account withdrawals are generally restricted
• In addition, programs had to be:
• In operation OR
• In development and planning to enroll participants by the

end of 2017

CSA Program Criteria

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CSAs By the Numbers

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State of the Field Highlights

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• More than 382,000

children have a CSA as of the end of 2017 – a 22% increase from 2016

• 87% of CSA

programs enroll fewer than 2,000 children per year

• 7 large programs

account for nearly 86% of total children with CSAs

Participating Children

87% 13% Annual Enrollment in CSA Programs Fewer than 2,000 2,000 or more

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• 65% of CSA programs

are managed by nonprofits, and 33% are run by government agencies

• 67% (253,893) of CSA

participants are enrolled in programs

• perated by

government agencies

Program Manager

65% 33% 2% Organizations Running CSA Programs

Nonprofit Government agency Other

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• 54% of programs use

529 accounts; 35% use savings accounts

• 86% (322,925) of CSA

participants have 529 accounts

Account Type

54% 35% 11% Types of Accounts Used by CSA Programs

529 account Savings account Other

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• 74% of programs are
• pt-in, while 26%

automatically enroll participants

• 84% (318,270) of CSA

participants are in programs with opt-out enrollment

Enrollment

74% 26% Method of Enrollment in CSA Programs Opt-in Opt-out

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• 69% of programs

receive support from the philanthropic community (including community and

• ther foundations)
• Around one-third of

programs receive at least one type of government support

Funding

Federal funding State funding 529 Plans Local funding Corporations/businesses Individual donors Community and other foundations

8% 10% 15% 17% 35% 46% 69%

Funding Types for CSA Programs

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• From 2016 to 2017 survey, programs offering savings

matches dropped from 71% to 52%

• $50 is the most common initial deposit offered

Incentives

19% 43% 52% 70%

0% 10% 20% 30% 40% 50% 60% 70% 80% Prize-linked savings Benchmark incentive Savings match Initial deposit

Types of Incentives Used by CSA Programs

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Discussion

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• CSA programs should pursue both public and

private funding sources to create scalable CSA programs

• Automatic enrollment facilitates the operation of

large-scale programs and makes programs more inclusive

• More research is needed on incentives so that

programs will be able to select and incorporate incentives that are most effective for their participants

Implications

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Audience Q&A

What questions do you have? Share them in the Questions box!

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Today’s Speakers

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• Explore our many resources
• Join the Campaign for Every Kid’s Future
• Attend our upcoming webinars
• Save the date for the 2018 Prosperity Summit
• Stay in touch!

Next Steps

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CSA Resources

Investing in Dreams (Step-by-step CSA design guide) www.prosperitynow.org/topics/savings CSA Directory/Map www.prosperitynow.org/map/childrens-savings

Campaign Website (FAQs, program info, policy, research) www.savingsforkids.org

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CSAs for Your Community: Tailoring CSA Programs to Meet Diverse Needs May 15 (2-3 pm EDT) CSAs in the City: Assessing Municipal and Countywide Opportunities July 17 (2-3 pm EDT) Housing Assistance and CSA programs: Making the Connection October 16 (2-3 pm EDT)

Future CSA Webinars

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Plug in to the Prosperity Now Community

• Campaign for Every Kids Future — Children’s Savings Accounts
• Adult Matched Savings Network
• Racial Wealth Equity Network
• Financial Coaching Network
• Taxpayer Opportunity Network
• Medical Financial Partnership Network
• Campaign for Every Kids Future — Children’s Savings Accounts
• Affordable Housing Network
• Innovations in Manufactured Housing (I’M HOME) Network

Visit any of the networks above at prosperitynow.org/getinvolved to get started.

Sign up for listservs and working groups, volunteer to facilitate peer discussions, serve in a leadership role and more!

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Stay in Touch!

Diego Quezada Program Associate dquezada@prosperitynow.org 202.601.1007 Monica Copeland Senior Program Manager mcopeland@prosperitynow.org 202.372.0078

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Thank You!

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