Assets and Liabilities, Educational Expectations, and Children's College Degree Attainment
Current income is usually insufficient to cover college costs in most families, who believe that they must save for college for their children. Furthermore, effects of household savings and asset holding may extend beyond financial security and affect long-term development of children through investments in education, and through changes in outlook, motivation, and achievement (Sherraden, 1991). Building on an emerging area of research, this study uses a longitudinal data set and controls for many other variables to examine household assets (financial and nonfinancial) and liabilities (secured and unsecured) and their association with later attainment of a bachelor’s degree. We also investigate relationships of assets and liabilities with educational expectations of both parents and children, which, in turn, may be linked to college completion.