The good news is that an increasing number of families are saving for their kids’ college education. The bad news, according to Fidelity Investments’ latest College Savings IQ survey of almost 2,000 parents nationwide, is that many are likely not saving nearly enough.
A record 72 percent of families have opened college savings accounts, but many families are underestimating the cost of college. Parents of high schoolers, for example, are expecting a four-year nonprofit private college education will cost $145,000 on average. But the projected sticker price is close to $220,000.
Parents saving for college with a 529 plan reported an average balance of $32,000 saved, almost 50 percent more than parents saving without a 529 plan. Parents working with a financial advisor also reported saving more for college than those who didn’t have an advisor — $14,000 more, according to the Fidelity survey.
No comments:
Post a Comment