Saving for Learning. Strand 2: An International Comparison. Research Report.

Overview & Synopsis

This report compares education systems, incentives, and evidence of saving for education in four countries--Denmark, Japan, New Zealand, and the United States--with implications for the United Kingdom. The report's objective is to identify evidence of saving for education in each comparator country, along with government policies and mechanisms that provide incentives for individuals or families to save for education. The report begins with an overview of the education system in each country to better understand the importance of education and its impact on household finances. The next section offers an overview of theories of household saving and outlines trends in saving rates for each country. The next section discusses forms of saving for education. Results of analyses show that the most important determinant of saving for education is simply the cost of education. Therefore, if the costs were to rise in the UK, there would be a rise in saving for education. Also, tax breaks to encourage saving for education in the UK are unlikely to alter saving patterns. Individuals tend to save regardless of whether tax incentives are in place. (Contains a glossary, 4 appendices, 7 Internet resources, 11 tables, 14 figures, and 37 references.) (WFA)