A new study published by The New America Foundation (NAF) claims that saving during childhood can be an indicator of future college enrollment and graduation success, reports The Chronicle of Higher Education.
The NAF report, titled Creating a Financial Stake in College, says that students who save as children are more likely to fill out college applications, and that their chances of successfully graduating are higher. The report is the first of a series that will be published in the coming weeks.
"The report presents evidence on the relationship between children’s savings and college success and provides the context for a broader discussion of designing children’s savings policies and ensuring that they offer children a meaningful financial stake in college," reads a summary of the report published on the NAF's website.
The NAF also makes several policy recommendations to encourage college enrollment in young people. The proposed ASPIRE Act would enable policy officials to create savings accounts for all newborn children to help pay for college, and would allow states to match parental contributions.
If you're planning on filling out a college application, make sure to research financial aid packages such as scholarships. Although earning a degree can be expensive, merit-based financial aid can offset the cost of things like tuition.