Factors associated with savings and the achievement of savings goals in individual development accounts: evidence from the American dream demonstration

Factors related to savings and the achievement of savings goals in individual development account (IDA) programs are explored. Using a multinomial logit analysis, participants with no savings (non-savers), positive savings but no matched withdrawal (unmatched savers), and positive savings with a matched withdrawal (matched savers) are compared. Increased hours of financial education required by IDA programs were associated with a decrease in the probability of being a matched saver (vs. non-saver and unmatched saver). At the same time, hours of financial education that participants took beyond those required of them increased the probability of being an unmatched saver (vs. non-saver) and matched saver (vs. non-saver and unmatched saver). A number of other factors were significant when estimating the probability of being in each group, including match cap, match rate, prior access to a savings account, race/ethnicity, marital status, educational attainment, and intended use of the IDA.