529 plans boost college savings; increase planning
A recent survey conducted by the College Savings Foundation finds that parents saved less for college in 2008 than the year previous and those who employed a 529 college savings plan saved much more than those who didn’t.
Findings from the survey indicate that:
- More than half of parents without a 529 plan saved nothing
- Sixty-nine percent of those with a plan saved more than $5,000
- Forty-nine percent of those with a plan saved more than $10,000
- Twenty-four percent of parents say they used automatic savings plans (ASP) to help save
- Forty-two percent of those utilizing ASP saved $100 or less per month
- Twenty-nine percent of those utilizing ASP saved as much as $300 per month
- Twenty-two percent of parents say their child’s grandparents would help with college funding
- Sixty-nine percent say they have no one to assist them with college costs
- Sixty-five percent of respondents say they wouldn’t ask friends or family to contribute toward college
Researchers with the College Savings Foundation say that grandparents are an “untapped resource” when it comes to funding college. Have your clients considered asking their parents for help in affording the cost of their child’s education? Would that be an efficient strategy? Please leave your thoughts on this alternative source of funding below.