Childhood Predictors of Midlife Finance Outcomes in the Chicago Longitudinal Study

This study examined the predictors of financial assets (e.g., savings and retirement assets) at early midlife in a sample of 1,092 individuals (93.7% Black American) who grew up in low-income neighborhoods. Data were drawn from the Chicago Longitudinal Study, which has tracked participants from early childhood to midlife and consists of participant, parent, teacher surveys, and administrative records. The main outcomes were savings in 2019 dollars (log) and savings in the top quartile of the study sample, both self-reported at age 35-37. Hierarchical linear and binary logistic regression analyses identified many significant (p < .05 or p < .01) predictors of assets, including: involvement in child welfare system by age 5 (b = -1.55), Child-Parent Center preschool participation (b = 0.77), early math achievement (b = 0.05), socio-emotional adjustment (0.18), grade retention (b = -1.14), school quality (b = 1.50), and juvenile arrest (b = -2.17). The strongest alterable predictors in the full model were involvement in child welfare system, socio-emotional adjustment, grade retention, school quality, and juvenile arrest. The full model also indicated that males had greater savings and Black participants fewer savings. Parent expectations and involvement as well as school quality also predicted top quartile savings status. Implications for future research and practice are discussed. The contribution of school experiences in early and middle childhood suggests greater investments in programs that promote socio-emotional learning and academic success.