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Getting Going on Savings: Evaluation of a Pilot Roth IRA Program for Low-Income Young Adults

Last registered on August 01, 2025
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Pre-Trial

Trial Information

General Information

Title
Getting Going on Savings: Evaluation of a Pilot Roth IRA Program for Low-Income Young Adults
RCT ID
AEARCTR-0016479
Initial registration date
July 29, 2025

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
August 01, 2025, 10:14 AM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Country
United States of America
Region

Primary Investigator

Name
Raymond Kluender
Affiliation
Harvard University
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Other Primary Investigator(s)

PI Name
Alicia Modestino
PI Affiliation
Northeastern University
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PI Name
Matthew Notowidigdo
PI Affiliation
University of Chicago Booth School of Business
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Additional Trial Information

Status
In development
Start date
2025-07-30
End date
2026-01-01
Keywords
Finance & Microfinance
Additional Keywords
Personal Finance, Consumer Finance, Savings, Cash Transfers
JEL code(s)
D14, G4
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
This study will evaluate an initiative funded by the John C. Bogle Center for Financial Literacy to provide information plus a $1,000 cash transfer for young adult workers in low-income households to open and fund Roth IRA accounts. In partnership with the City of Boston’s Office of Youth Employment and Opportunity (YEO) we will conduct a randomized controlled trial to measure near-term and long-term impacts on financial and general well-being.
External Link(s)

Registration Citation

Citation
Kluender, Raymond, Alicia Modestino and Matthew Notowidigdo. 2025. "Getting Going on Savings: Evaluation of a Pilot Roth IRA Program for Low-Income Young Adults." AEA RCT Registry. August 01. https://doi.org/10.1257/rct.16479-1.0
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
(1) Education, Assistance, and $1,000 Transfer: participants will receive curated financial literacy materials, a Roth IRA workshop, individual support, and $1,000 to open/fund a Roth IRA.
(2) Education and Assistance: participants will receive the same materials and support but without funding.
Intervention Start Date
2025-07-30
Intervention End Date
2026-01-01

Primary Outcomes

Primary Outcomes (end points)
From administrative data:
(1) Roth IRA account opening (binary)
(2) Roth IRA balance amounts ($)

From follow-up surveys:
(3) Perceived comfort level with managing finances
(4) Confidence in meeting financial goals
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
From administrative records:
- Roth IRA contributions ($)

From credit report data:
- Credit score
- Credit limit ($)
- Total balances ($)
- Balances past due ($, 30+ days)
- Balances in default ($, 90+ days)
- Debt in collections ($)
- Number of credit cards (integer)
- Any auto loan (binary)

From follow-up surveys:
- Monthly savings ($)
- Monthly income ($)
- Monthly spending ($)
- Use of financial services
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
Depending on enrollment in the summer jobs program, we will run a financial education workshop for between 50 and 100 youth who are at least 18 years old. We will randomly assign 25 of the eligible participants (youth over the age of 18 who attended the workshops) to receive the $1,000 cash transfer in order to open and fund their Roth IRA account.
Experimental Design Details
Not available
Randomization Method
Computer
Randomization Unit
Individual
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
n/a
Sample size: planned number of observations
50 to 100, depending on enrollment. 25 will be in the treatment group regardless.
Sample size (or number of clusters) by treatment arms
25 in cash transfer treatment group, the remainder in the education-only control group.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
Northeastern University Research Enterprise Services (NU-RES)
IRB Approval Date
2025-07-25
IRB Approval Number
25-06-33
Analysis Plan