Fernando de Querol Cumbrera
Research expert covering construction, loans, leasing, savings, and debt
Saving for college in the U.S. - statistics & facts
With the costs of a college education skyrocketing in the United States and an ever increasing rate of college enrollment it is never too early to start planning ahead for a child’s college education. However only 20 percent of parents between 30 and 59 years old were saving for their children's college education in 2017.
It is estimated by some experts that a college education can lead to a lifetime earnings increase of around 250,000 U.S. dollars, however the rate of saving for college differs between generations. Almost 85 percent of parents agreed that college was an investment in their child's future. Over half of American parents were confident about meeting the costs of their children's college education in 2018.
The government offers some benefits for those who save for future college costs. One such example are 529 plans, which give tax advantages to savers. The assets of 529 plans has risen steadily since 2001. In 2018, American families saved, on average, 1,471 U.S. dollars for college in a 529 plan, whereas they saved only 27 U.S. dollars for college in Bitcoin or another cryptocurrency.
It is estimated by some experts that a college education can lead to a lifetime earnings increase of around 250,000 U.S. dollars, however the rate of saving for college differs between generations. Almost 85 percent of parents agreed that college was an investment in their child's future. Over half of American parents were confident about meeting the costs of their children's college education in 2018.
The government offers some benefits for those who save for future college costs. One such example are 529 plans, which give tax advantages to savers. The assets of 529 plans has risen steadily since 2001. In 2018, American families saved, on average, 1,471 U.S. dollars for college in a 529 plan, whereas they saved only 27 U.S. dollars for college in Bitcoin or another cryptocurrency.
Fernando de Querol Cumbrera
,
Dec 18, 2023
Fernando de Querol Cumbrera
Research expert covering construction, loans, leasing, savings, and debt
