The Effects of Youth Bank Accounts on Later-in-life

Financial Capability and Economic Self-Sufficiency

Carly Urban, Ph.D.J. Michael Collins, Ph.D.

B-S-J-G (China)

Belgium (Flemish)

Canadian provinces

RussiaNetherlands

Australia

United StatesPoland

Italy

Spain

LithuaniaSlovak Republic

Chile

Peru

Brazil

380

400

420

440

460

480

500

520

540

560

580

PISA: Mean performance in financial literacy, 2015

Mean Mean Mean Mean scorescorescorescore

0

10

20

30

40

50

60

70

80

90

100

Chile

Poland

Russia

Italy

Lithuania

Slovak Republic

B-S-J-G (China)

Spain

United States

OECD average-10

Belgium (Flemish)

Canadian provinces

Australia

Netherlands

%

PISA 2015: Students reporting holding PISA 2015: Students reporting holding PISA 2015: Students reporting holding PISA 2015: Students reporting holding a bank accounta bank accounta bank accounta bank account

-20

0

20

40

60

80

100

Slovak Republic

Russia

Lithuania

Poland

B-S-J-G (China)

Chile

United States

OECD average-10

Italy

Belgium (Flemish)

Australia

Spain

Canadian provinces

Netherlands

Score-point difference

Before accounting for socio-economic status

Bank Accounts and Financial Literacy in PISA

-20

0

20

40

60

80

100

Slovak Republic

Russia

Lithuania

Poland

B-S-J-G (China)

Chile

United States

OECD average-10

Italy

Belgium (Flemish)

Australia

Spain

Canadian provinces

Netherlands

Score-point difference

After accounting for socio-economic status Before accounting for socio-economic status

Research Question:

What is the causal effect of youth bank accounts on

downstream financial and economic outcomes?

Access to Minor Accounts

Increase Credit Union

Membership by 2

percentage points

12%

14%

Access to Minor Accounts

Decrease the Likelihood <20

Year Olds are Unbanked by 6

percentage points

16%

10%

How Can Banks Help Inform Research?

• Collect more data.

• Make it available for researchers.