Parents Savings On the Decline

July 1, 2009

For the first time in three years, parents are putting their children’s education ahead of their retirement according to a survey by Country Financial.

It is fantastic parents have prioritized education over other expenses, but doesn’t necessarily mean they can pay for all of it. A survey conducted by the Financial Research Corporation and released by the College Savings Foundation found a 21% drop in college savings plans over the last year.  

It’s obvious our trying economy is putting a strain on the bank account, especially for parents. Going to college during a recession is without a doubt difficult and stressful.

“Assuming costs increase 5% a year, the projected cost of college in 15 years will be more than $100,000 for a four-year public college and more than $200,000 for four years at a private college.” – Me First: Fewer Parents Saving for Kids’ College Education by Aaron Crowe

This hefty amount is something all students and parents must be aware of. From a students’ part time job, parents’ contributions, scholarships, and student loans college is a realistic possibility.

Attending college is for many people the most important event of their lives. An education many times determines where you’ll end up in life; from your career, to friends and co-workers, even where you live.  Although many students are passing up dream colleges for less expensive universities, grads have realized the value of a higher education has no price tag. College is expensive and debt is a guaranteed outcome for most all graduates.  Parents are pinching their pennies tighter than ever to get their kids through.  

So to all you grads, your parents may not be able to afford that new car or that summer trip to Mexico you wanted, but they’re doing their best. Be thankful and give your parents a shout out, they will appreciate a simple “thanks” more than you know.

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