More families are saving for their children’s college education than in the past, according to the College Savings Indicator Study released Wednesday by Fidelity Investments.
Sixty-nine percent of families have started saving for college, an all-time high since the inception of the report in 2007 and an increase from 66 percent last year and 58 percent in 2007, the study shows.
Sixty-one percent have a plan in place for savings and 37 percent are using a dedicated college savings account, such as a 529 plan. There has been a 22 percent increase in the number of college savings plans opened in the first half of the year compared to the same time period last year.
However, on average, parents say they want to cover 62 percent of the total cost of college but they are on track to cover only 34 percent of the cost. For those working with a financial advisor, the outlook is better. Nine in 10 working with an advisor feel confident they will reach their savings goals.
Of those working with an advisor, one in ten families asked the advisor to meet with the child to discuss the cost, as well as the choice of schools and study areas, Fidelity says.
The study was based on the responses of 2,500 parents in households with children 18 years of age or younger and household incomes of $30,000 or more a year.