Massachusetts Parents Boost College Savings Amid Rising Education Costs — FMR LLC (Fidelity Investments)

Event summary

42% of Massachusetts parents now plan to cover the full cost of their children’s college education, up from 31% in 2024.
77% of parents have started saving for college, with 39% using dedicated college savings accounts.
529 college savings accounts are gaining traction, with 44% of families surveyed having set up an account, up from 39% in 2024.
Parents saving in 529 accounts contribute around $19,000 per year, compared to $8,000 for those without structured plans.
88% of parents cite their own student debt as a motivator to save more aggressively for their children’s education.

The big picture

The rising cost of higher education is driving Massachusetts parents to save more aggressively for their children’s college expenses. Fidelity Investments and MEFA’s research highlights a strategic shift towards early and structured savings, particularly through 529 accounts, as families seek to avoid the financial burdens of student debt. This trend reflects broader concerns about the long-term value of higher education and the need for financial planning tools to support families in meeting their savings goals.

What we're watching

Savings Gap: Whether families can bridge the remaining savings gap to meet their college funding goals.
AI Impact: How parents' perceptions of AI's influence on future careers will shape their college savings strategies.
529 Adoption: The pace at which 529 college savings accounts will continue to grow in popularity among families.