Abstract
College Savings Plans (529 plans) and Child Development Accounts (CDAs) are two policy tools designed to encourage families to save for college. In Maine, a statewide CDA program has been established using the state's 529 plan platform and offering a $500 financial incentive for postsecondary education to every newborn. This program is designed to increase access to higher education by encouraging college savings at the beginning of a child's life. Survey data from eligible parents (N = 437) suggest that the $500 incentive was attractive and financially sophisticated parents were more likely to enroll their child. We conclude that financial incentives can increase enrollment in asset-building programs but are not the ideal strategy to achieve universal enrollment.
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