1,000 Parents Surveyed Across the Country Embrace a Wider Definition of Higher Ed for Themselves and Their Children
WASHINGTON, Aug. 15, 2024 /PRNewswire-PRWeb/ -- As students prepare to go back to school this fall, the vast majority, 94%, of parents across the country are dedicated to funding their children's higher education and are increasing their savings as a primary strategy for doing so. At the same time, parents' expectations are changing, with 88% saying their children will require additional education and skills throughout their lives. Most now believe that the college experience will need to change by incorporating more career and workforce training into their offerings.
These are among the key trends emerging from the College Savings Foundation's 18th Annual State of Higher Ed Savings Survey of more than 1,000 parents of children 25 and younger. (For Infographic click https://www.collegesavingsfoundation.org/?p=11208&preview=true)
Savings is taking a starring role in education planning, the survey found. Among the 94% of parents funding their children's higher education, almost half say that savings is their primary way of doing so. All parents are saving substantially with 71% saving upwards of $5,000, 55% more than $10,000, and 36% more than $25,000 per child. All measures are up from prior years.
For the first time in the survey's history, more than half of all parents said they are saving in a 529, also up significantly, with most of those making recurring monthly and quarterly contributions. One third of all parents say that 529s are their primary higher ed savings vehicle, followed by 20% using a CD or regular bank savings and 14% using mutual funds, stocks and bonds.
Additionally, 43% of parents said they are now using, or will use, a 529 for their own education, as they do for their own children.
"We are excited to see more families engaged in proactive saving, and recognizing the many benefits of using 529s for this purpose, as the way to prepare their children for both traditional college and career and technical schools," said Chris McGee, Chair of CSF, a national nonprofit helping families in a lifetime of education saving. "Families are telling us that they are going to need ongoing education and skills-building and are investing in 529s to achieve that."
Overall, parents of all ages embrace higher education but with a broader view of what that looks like today. Almost all parents say that career and technical education is as valuable to them as college, reflecting a recognition of the many highly skilled positions available require some postsecondary education but less than a four-year degree.
And, while traditional four-year college is still a prominent choice for families, 79% of parents say that the college experience needs to change to address future career paths. More than a third of that group say that classes should be more focused on career needs and training and another third say four-year schools need to adapt their programs to workforce needs. A solid minority of respondents also supports three-year degree options and more competency-based education.
Higher Ed Choices by Age Group
To get a sense of how families are making decisions and experiencing higher education now, the survey looked at parents at different stages in their education planning – those with students ages 18-25 and those with students ages 15-17 – and found a strong vote of confidence in their choices:
- Among the 38% of respondents with college-age children (18-25), 56% are in four-year public or private college; 13% in career and technical education; 12% in community college; 2% in apprenticeships; 3% in the military, and 12% are not in higher ed.
86% of this group says their child feels that their choice is preparing them for the future.
71% of these parents feel that tuition and fees incurred for higher ed today represent a good value.
- Among the 55% of respondents with children 15-17 years old: 69% expect them to attend a four-year public or private college, 17% career and technical education, 1% an apprenticeship, and 1% the military. 11% said they can't yet predict their children's choice.
What families know about 529s
The survey showed increasing awareness among parents about what 529s are and what types of expenses they can fund. The following reflect what parents know about 529s and what they are using them for:
- 66% - Traditional college, career and technical schools, community college, graduate school and certified apprenticeships
- 65% - Computers, books, technology software and the cost of internet
- 57% - Up to $10,000 to pay off student loans (lifetime limit per beneficiary and each sibling)
- 57% - Up to $10,000/year for K-12 tuition
- 51% - Unused funds may be eligible for rollover to a Roth IRA up to a lifetime limit of $35,000 per beneficiary
Parents' Own Need for Higher Ed Savings
The survey also identified the parents' own continuing education needs, with almost half saying they envision further education to maintain their current positions and careers, and over half saying that, if they change careers for any reason, they will need additional education or certification.
The CSF 2024 State of Higher Ed Savings survey of parents was conducted with more than 1,000 parents across the country via Survey Monkey. The College Savings Foundation (CSF) is a Washington, D.C.- based not-for-profit organization helping American families achieve their education savings goals for a lifetime. www.collegesavingsfoundation.org
Media Contact
Lynthia Romney, College Savings Foundation, 1 (914) 589-2140, [email protected], www.collegesavingsfoundation.org
SOURCE College Savings Foundation
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