Effects of a randomized tax-time savings intervention on savings account ownership among low-and moderate-income households

Mathieu Despard; Michal Grinstein-Weiss; Anna Deruyter; Shenyang Guo; Jane E. Oliphant; Terri Friedline

doi:10.1891/1052-3073.29.2.219

Effects of a randomized tax-time savings intervention on savings account ownership among low-and moderate-income households

Mathieu Despard, Michal Grinstein-Weiss, Anna Deruyter, Shenyang Guo, Jane E. Oliphant, Terri Friedline

Research output: Contribution to journal › Article › peer-review

Abstract

Being unbanked makes it difficult for low and moderate-income (LMI) households to manage finances, save, and access credit. We assessed effects of an online tax-time savings intervention on savings account openings in the 6 months following tax filing among a sample of 4,692 LMI tax filers. Treatment group participants had 60% greater odds of opening a savings account than control group participants (p < .05). However, statistically significant treatment effects were found only for participants who filed early in tax season and only for 5 out of 18 specific interventions. Low-cost messages delivered at tax time can encourage early season LMI tax filers who expect larger refunds to open savings accounts. Findings lend additional empirical support for financial inclusion efforts.

Original language	American English
Pages (from-to)	219-233
Number of pages	15
Journal	Journal of Financial Counseling and Planning
Volume	29
Issue number	2
DOIs	https://doi.org/10.1891/1052-3073.29.2.219
State	Published - 1 Jan 2018
Externally published	Yes

Keywords

Financial inclusion
Financial services
Low-income households
Saving
Taxes
Unbanked

All Science Journal Classification (ASJC) codes

Finance
Economics and Econometrics

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1891/1052-3073.29.2.219

Cite this

@article{7d743f5af2bf4e339a748a820958ec94,

title = "Effects of a randomized tax-time savings intervention on savings account ownership among low-and moderate-income households",

abstract = "Being unbanked makes it difficult for low and moderate-income (LMI) households to manage finances, save, and access credit. We assessed effects of an online tax-time savings intervention on savings account openings in the 6 months following tax filing among a sample of 4,692 LMI tax filers. Treatment group participants had 60% greater odds of opening a savings account than control group participants (p < .05). However, statistically significant treatment effects were found only for participants who filed early in tax season and only for 5 out of 18 specific interventions. Low-cost messages delivered at tax time can encourage early season LMI tax filers who expect larger refunds to open savings accounts. Findings lend additional empirical support for financial inclusion efforts.",

keywords = "Financial inclusion, Financial services, Low-income households, Saving, Taxes, Unbanked",

author = "Mathieu Despard and Michal Grinstein-Weiss and Anna Deruyter and Shenyang Guo and Oliphant, {Jane E.} and Terri Friedline",

note = "Publisher Copyright: {\textcopyright} 2018 Association for Financial Counseling and Planning Education{\textregistered}.",

year = "2018",

month = jan,

day = "1",

doi = "10.1891/1052-3073.29.2.219",

language = "American English",

volume = "29",

pages = "219--233",

journal = "Journal of Financial Counseling and Planning",

issn = "1052-3073",

publisher = "Springer Publishing Company",

number = "2",

}

TY - JOUR

T1 - Effects of a randomized tax-time savings intervention on savings account ownership among low-and moderate-income households

AU - Despard, Mathieu

AU - Grinstein-Weiss, Michal

AU - Deruyter, Anna

AU - Guo, Shenyang

AU - Oliphant, Jane E.

AU - Friedline, Terri

PY - 2018/1/1

Y1 - 2018/1/1

N2 - Being unbanked makes it difficult for low and moderate-income (LMI) households to manage finances, save, and access credit. We assessed effects of an online tax-time savings intervention on savings account openings in the 6 months following tax filing among a sample of 4,692 LMI tax filers. Treatment group participants had 60% greater odds of opening a savings account than control group participants (p < .05). However, statistically significant treatment effects were found only for participants who filed early in tax season and only for 5 out of 18 specific interventions. Low-cost messages delivered at tax time can encourage early season LMI tax filers who expect larger refunds to open savings accounts. Findings lend additional empirical support for financial inclusion efforts.

AB - Being unbanked makes it difficult for low and moderate-income (LMI) households to manage finances, save, and access credit. We assessed effects of an online tax-time savings intervention on savings account openings in the 6 months following tax filing among a sample of 4,692 LMI tax filers. Treatment group participants had 60% greater odds of opening a savings account than control group participants (p < .05). However, statistically significant treatment effects were found only for participants who filed early in tax season and only for 5 out of 18 specific interventions. Low-cost messages delivered at tax time can encourage early season LMI tax filers who expect larger refunds to open savings accounts. Findings lend additional empirical support for financial inclusion efforts.

KW - Financial inclusion

KW - Financial services

KW - Low-income households

KW - Saving

KW - Taxes

KW - Unbanked

UR - http://www.scopus.com/inward/record.url?scp=85064453170&partnerID=8YFLogxK

U2 - 10.1891/1052-3073.29.2.219

DO - 10.1891/1052-3073.29.2.219

M3 - Article

SN - 1052-3073

VL - 29

SP - 219

EP - 233

JO - Journal of Financial Counseling and Planning

JF - Journal of Financial Counseling and Planning

IS - 2

ER -

Effects of a randomized tax-time savings intervention on savings account ownership among low-and moderate-income households

Abstract

Keywords

All Science Journal Classification (ASJC) codes

UN SDGs

Access to Document

Other files and links

Cite this