Parental College Savings Hit Record Highs Amid Rising Education Costs
Event summary
- 41% of parents now plan to cover the full cost of their children’s college education, up from 37% in 2024.
- 84% of parents have started saving for college, up from 74% in 2024, with an average annual savings of $9,000.
- 529 college savings accounts have seen adoption rise to 45% from 39% in 2024, with savers holding nearly twice as much ($45,752 vs. $24,387).
- Only 44% of parents who plan to cover college costs are on track to meet their savings goals.
The big picture
Fidelity’s research highlights a strategic shift in how families are approaching college financing, with record numbers of parents taking on more of the cost burden. This trend reflects broader concerns about student debt and the long-term value of higher education, even as the cost of college continues to climb. The growing adoption of 529 plans suggests families are increasingly turning to specialized financial tools to manage these expenses.
What we're watching
- Savings Gap Dynamics
- Whether parents can close the 19% shortfall between their savings goals and current progress.
- 529 Plan Growth
- The pace at which 529 account adoption will continue to rise as families seek tax-advantaged savings options.
- AI Impact on Education
- How parental perceptions of AI’s influence on career paths will shape college savings and major selection.
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