Study: Parents Still Saving for College in Down Economy
A report released by Sallie Mae last week shows that 52% of parents are “saving the same amount or more” for college despite the down economy. The report continues:
In fact, 62 percent of parents of college-bound children are saving for education, trailing only retirement as a savings priority. Fourteen percent of parents reported saving the most for their children’s college, second to 27 percent who save the most for retirement. For nearly half (46 percent) of parents, saving for college ranks in their top three savings priorities.
It amazes me how many people are able to set aside savings for college but don’t want to invest in a 529 plan right now because of “market conditions”. Those market conditions have pushed the market higher three months in a row, and people have missed out ona 25% gain.
Many parents are actually looking for alternative college plans with no investment risk involved. No wonder some companies like Gerber Life create financial products such as Start Smart College Plan to satisfy the demand http://www.gerberlife.com/gl/view/guide_products/esp/index.jsp