Are millennials delusional? Half say they’ll cover the cost of college for their kids
Let’s start with some good news: The percent of parents saving for college is rising. In a new survey Fidelity Investments found that 69% of people with children under 18 were saving; that’s up from 64% last year. Another smart move? More than half of the savers are using tax-advantaged 529 accounts.
Millennial parents, which Fidelity is defining as those born between 1981 and 1997, turn out to be the most aggressive with 74% reporting that they are saving for their kids’ college. Plus, 46% of them say they plan to cover the full cost of college for their children, compared to 35% of the broader group surveyed.
It makes sense that this generation has an above-average desire to shield their offspring from the cost of college. Many of them have student debt themselves, including 56% of the 642 surveyed by Fidelity. This generation has been a part of, and even leaders of, a nationwide conversation about the downsides of indebtedness. In fact, a debate continues about whether student debt is causing delayed marriage, delayed home buying and delayed parenthood among young Americans.continue reading »