Family Savings and Children’s Non-Cognitive and Cognitive Development: Evidence from China

Previous research has found positive correlations of family assets with children’s cognitive and non-cognitive development in separate studies. The association between family assets and children’s cognitive development is mediated by parental engagement in education. Using a sample (N = 3,435) from a nationally representative household survey in China, we examine whether family savings for children are associated with parental engagement as well as children’s non-cognitive and cognitive development. Children’s self-control scores and academic performance are used to measure their non-cognitive and cognitive development. Consistent with prior literature, results suggest that family savings for children are positively associated with all three dependent variables: parental engagement in education, children’s self-control, and academic performance. In addition, parental engagement in education is a mediator between family savings and child development. The association between family savings and children’s cognitive development is also partially mediated by their non-cognitive development. Practice and policy implications are discussed.