Jae C. Hong, AP
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.
- Here's a look at the 20 worst jobs of 2015...
- Balancing act: Does parenting bring...
- The 10 best cities in America for job seekers...
- Dave Ramsey says: Build your budget together
- 'Such a stress reliever': In Rhode Island,...
- Index funds: A low cost way to solid...
- Is the 40-hour workweek falling out of fashion?
- Are schools preparing students for the new...
- Are schools preparing students for the... 18
- 'Such a stress reliever': In Rhode... 13
- Utah jobless rate holds steady at 3.4... 5
- Millennials are more depressed than... 3
- US consumer prices up a slight 0.1... 1
- Renovation Solutions: Top remodeling... 1
- Balancing act: Does parenting bring... 1
- Americans are very unsure about their... 1