Does Prior Banking Experience Matter? Differences of the Banked and Unbanked in Individual Development Accounts

Michal Grinstein-Weiss, Yeong H. Yeo, Mathieu R. Despard, Adriane M. Casalotti, Min Zhan

Research output: Contribution to journalArticlepeer-review

Abstract

Using data from the 4-year American Dream Demonstration, this study compares saving performance and program participation of banked (n = 1,538) and unbanked participants (n = 466) enrolled in 14 IDA programs. The study shows banked participants had S$2.74 higher average monthly net deposit (p < 0.05); 5% higher deposit frequency (p < 0.001); and 42% less odds of drop out than unbanked participants (p < 0.001). Moreover, program characteristics such as financial education, monthly saving targets, peer group meetings, and direct deposit are important predictors of program performances. Individual characteristics such as race/ethnicity, home ownership, and income are significantly associated with program performance.

Original languageEnglish (US)
Pages (from-to)212-227
Number of pages16
JournalJournal of Family and Economic Issues
Volume31
Issue number2
DOIs
StatePublished - 2010

Keywords

  • Asset building
  • Banked
  • IDAs
  • Savings
  • Unbanked

ASJC Scopus subject areas

  • Social Psychology
  • Economics and Econometrics

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