Are you one of those parents who is NOT putting money aside for your kid’s college because you are banking on your kid getting a scholarship or grant to cover their college costs? Over half of those surveyed by Ipsos Publc Affairs on behalf of Sallie Mae last August used that excuse for the reason for not saving.
The research concluded that overall, parents these days, are saving less for college. Of the 1600 parents with children under 18 surveyed, only 50%, down from 60% in 2010, said they had plans to put away about 1/3 the cost of their kids’ future college costs.
The report also revealed that not only are less parents saving, those saving are putting away less money. Parents who saved have socked away merely $12,000 total, a drop from the $20,000 reported in 2010.
The report concluded that while high-income parents, earners of $100,000 higher, saved more money, about $20,000, those who earned less than $35,000 a year, actually put away 6% of their income away compared to the 3% higher income earners saved.
Read more analysis from Wall Street Journal.