College Savings Plan a Top Priority for Parents in 2014

Parents believe saving for their children’s education is essential this new year.

With student loan debt drowning so many college graduates, it seems more parents are socking away money for their teenagers higher education plans.

According to The Fidelity Investments 2014 College Resolution Study, 85 percent of parents report that saving for college is one of their top three savings priorities for 2014. One-third (34 percent) name it their top savings priority for the year.

“For many parents, saving for college is an area of focus throughout the year, but the new year is an ideal time for families to reassess their finances, set new savings goals and priorities, and establish a college savings plan,” says Keith Bernhardt, Fidelity’s vice president of college planning.

Another interesting aspect of the study revealed that parents are planning “to-do” lists geared toward educating themselves and their children on the various savings methods…

  • Talk to their children about how much college costs and how their family will pay for it (58 percent)
  • Research scholarships and grants to help offset costs (53 percent)
  • Consider talking to a financial or planning expert for help (48 percent)
  • Learn more about how the financial aid process works (39 percent)
  • • Ask their children to save some of their own earnings (30 percent)

Two-thirds of our nation’s college grads are inundated with debt when they graduate, an average of $26,600 in 2013 – and many don’t even have a job to pay it back. It’s a terrible situation. Budgeting for college when a child is young removes that burden from kids and parents, and gives the kids a chance to start working and saving instead of paying off debt.

If you need help budgeting or saving for college, contact Consolidated Credit today.