Saving for College a Priority for Parents and They Are Saving More for It, According to ‘How America Saves for College 2018’
New Report from
Parents Are Resourceful, Optimistic; Fewer Plan to Tap Retirement Funds
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How America Saves for College Infographic (Graphic: Business Wire)
After saving for general needs and emergencies, parents earmark funds for college more than for any other specific purpose, alongside retirement. Only 10 percent of parents plan to tap their retirement funds for college, down from 20 percent in 2016 — the last time this report was published. To keep their college savings on track, six in 10 parents (61 percent) contribute a set amount to their college fund on a regular basis. To find more money for college, 30 percent of parents have cut back on discretionary spending, and 27 percent have reduced their household expenses.
This year marks the first time tax-advantaged 529 college savings plans hold the largest share of college savings — 30 percent. That said, fewer than one-third of parents saving for college are using them (29 percent). Most parents who are not using 529 plans report not being aware of or knowing enough about them, or not having enough money to invest in them.
“This year’s report findings reflect America’s rising consumer confidence levels overall,” said
Nearly nine in 10 parents who have a college savings goal (86 percent) are confident they’ll achieve it. The average goal is
“Most parents aspire to give their children the opportunity to attend college, and it is encouraging to see them saving more and employing smart habits, and taking deliberate actions to make college a reality,” said
“How America Saves for College 2018” reports the results of online interviews Ipsos conducted in January and
For more information about saving, planning, and paying for college, visit SallieMae.com.
Ipsos is a global independent market research company ranking third worldwide among research firms. At Ipsos, we are passionately curious about people, markets, brands, and society. We make our changing world easier and faster to navigate, and inspire clients to make smarter decisions. We deliver research with security, speed, simplicity, and substance. We believe it’s time to change the game — it’s time for Game Changers! Visit http://www.ipsos-na.com to learn more.
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