Despite rising tuition costs, families are saving less for future college costs, according to an article on Real Time Economics.
Only 50 percent of parents have savings goals, which is down from the 60 percent in 2010. Of those who do save, they plan on putting aside $39,000 per child, but most families only hit half of that savings. The goal itself is only about one-third of future college costs.
Last year, those families who do save averaged almost $12,000 last year. In 2010, it was more than $20,000.
Although high-income parents save much more than those earning less, parents who earn less than $25,000 saved 6 percent, which is a greater percentage than the 3 percent of high income families.
Why are only 50 percent of parents putting away college money? Of those who don’t save, 53 percent said it is because they can’t afford it. However, more than half said they are leaving the costs up to grants and scholarships — the availability of which fell 15 percent the last academic year.