College tuitions have skyrocketed. In the past two decades, university fees have increased by over 38%, and in-state tuition has jumped by 56%.
Increasingly, Gen Z has started to question the value of college, and more than half have said it’s possible to find a well-paying job without a college degree.
However, many parents still seem to think college might be worth it. Fidelity recently released its annual College Indicator study, which it has been conducting since 2007 to understand how parents are thinking about saving for college. This year, Fidelity surveyed 1,985 families with children 18 or younger who intend to go to college. Here are the key findings:
- More parents are saving for college: Today, 74% of parents say they are saving for college compared to 58% in 2007. In addition, 73% say saving for college was their top priority, while only 62% said saving for retirement was their top priority.
- The majority of parents believe college is worth the cost: 77% of parents agree a college education is worth the cost, but 30% say they are not sure what the cost will be by the time their child enrolls. Meanwhile, 54% of parents say their child will have fewer options because college costs so much.
- Saving for college is getting harder: 93% of parents say they are worried about the rising cost of college; and while on average, they plan to cover two-thirds of the cost, they are only on track to cover 30% of their funding goal.
“While parents prioritize their children’s college education, the reality is that balancing day-to-day expenses with long-term savings can be daunting,” said Tony Durkan, vice president and head of 529 Relationship Management at Fidelity Investments.
Apply to the Most Innovative Companies Awards and be recognized as an organization driving the world forward through innovation. Early-rate deadline: Friday, August 30.