Getting Kids To College: Women Drive the Planning, but Take a Back Seat on Finances
74% of women say it's very important for kids to go to college, but one third say someone else directs the financial planning. Poor financial planning can put kids' future, women's retirement at risk.
New York (PRWEB) November 12, 2009 -- Women are highly committed to getting their kids to college and drive most households' college planning--but many take a back seat when it comes to college savings, according to the results of a nationwide survey of parents of pre-college age children released today by OppenheimerFunds, Inc. (OFI).
Nearly three quarters--74%--of 1,099 women polled said it's very important for their children to obtain a college degree, compared with 66% of 559 men polled.However, in households that have begun planning financially for college, primary responsibility for this critical exercise most often belongs to men.
"Women are typically the key force getting kids ready for higher education--everything from meeting with teachers, to helping with homework, to helping to identify the right college," said Donna Winn, president and CEO, OFI Private Investments Inc. "But preparing kids academically for college without planning for how to pay for it is like designing a house with no money to build it." By not being very heavily involved in the college financial planning process, women may risk not achieving one of their most cherished dreams for their children: a college diploma and a strong "launching pad" for adult life.
Lack of Involvement in College Savings Planning Now Means Women Pay the Price Later
Poor college financial planning on behalf of her kids can also impact a mother's own future, financial security, the OFI poll indicates. About eight of 10 women agree that it's important to plan financially for retirement and college costs at the same time. But only 10% of women strongly agree that they have such plans in place.
"If women don't manage the college saving process well, their retirement could take a hit," Winn said. "They could end up paying college costs out of their own retirement funds--or subsidizing a child who 'failed to launch' because of heavy college debt. Either way, women need to match their fervent devotion to the cause of college with much more attention to the financial side of the equation."
Women also are less likely than men to know how much their household has saved for college (56% vs. 65%) and less likely to have a college savings goal (40% vs. 46%).
Yet women realize they could do better at financial planning for college costs. While about half of women give themselves an A or B grade for their overall college planning efforts, nearly six of 10 give themselves a C or worse for their college savings efforts.
"Women owe it to their kids--and themselves--to take ownership of the college financial planning challenge," Winn said. "Women--and especially women planning on their own--need to know too that there are lots of external resources that can help jump-start the financial planning process."
OppenheimerFunds sponsors an educational Website, collegewithinreach.com, that offers information, guidance and tools for all aspects of the college planning process, including information on scholarships and financial aid, as well as investment vehicles like Coverdell Accounts, UGMA/UTMA Accounts, and 529 plans. Information specifically geared toward the college financial planning goals of women can be found at www.collegewithinreach.com/moms/.
About the Survey: The OppenheimerFunds poll was conducted online between September 25 and 29, 2009 by the national polling firm Mathew Greenwald & Associates. To qualify for the study, respondents had to be parents of a child age 18 or younger who is not currently attending college. A similarly-sized random sample of 1,725 respondents would have a margin of error at the 95% confidence level of plus or minus 2.4 percentage points. Sixty seven parents in the national sample indicated that no one was responsible for planning for their children's college education; these parents did not respond to the poll's specific questions about college planning behavior and savings levels.
About OppenheimerFunds, Inc and OFI Private Investments Inc.:OppenheimerFunds, Inc. (OFI) is one of the nation's largest and most respected asset management companies. Oppenheimer Private Investments Inc. (OFIPI), a subsidiary of OppenheimerFunds, Inc., helps individuals, institutions and nonprofit organizations work toward their financial goals by offering a diverse range of tailored investment products and services, including investment management services for 529 college savings and prepaid plans.
Investments in 529 college savings plans are neither FDIC insured nor guaranteed and may lose value. Please note the plan's disclosure document includes details such as investment objectives, risks, charges and expenses, and other information that investors should read and consider carefully before investing.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested. Before investing in any of the Oppenheimer funds, investors should carefully consider a fund's investment objectives, risks, charges and expenses. Fund prospectuses and, if available, summary prospectuses contain this and other information about the funds. You may download and view a prospectus now, or to obtain one, ask your financial advisor or call OppenheimerFunds Distributor, Inc. at 1.800.525.7048. Read prospectuses and, if available, summary prospectuses carefully before investing.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.
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