Youth Savings Accounts: A Financial Service Perspective - A Literature and Program Review

This paper examines the role of youth savings accounts as a financial service. It focuses on unique aspects of the youth market and identifies challenges for institutions seeking to provide youth savings services as a financial service or development intervention.

The paper is based on literature review and interviews with practitioners, researchers and donors. It discusses the following aspects of youth savings services:

• Demand for youth savings services and savings patterns of the youth;
• Savings products appropriate for the youth market;
• Financial education and alternatives to increase financial literacy;
• Barriers preventing youth from saving;
• Cost-effective ways of serving the youth market;
• Challenges and incentives for financial institutions in youth savings;
• Advantages and disadvantages of having adults hold accounts for youth;
• Informal savings services.

The paper includes case studies of successful initiatives in youth savings. It states that demand deposit products and youth savings products with flexible amount and timing of deposits may be most appropriate for the youth.