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Where Do You Expect College Money to Come From? Parent Savers vs. Non-Savers Weigh In [REPORT]

April 29th, 2015 · No Comments · Student Loans

by Kristy Welsh

(Last Updated On: February 26, 2018)

Where Do You Expect College Money to Come From? Parent Savers vs. Non-Savers Weigh In [REPORT]

While 89 percent of American parents believe college is an important investment in their children’s future, “savers” vs. “non-savers” clearly have a different idea of how to get there. A study conducted by Sallie Mae – the nation’s largest provider of private student loans – breaks down expected funding sources of the two groups. How do your own expectations compare?

Expected Sources of College Funding

Study participants were asked what percentage of college funding they expect from the following sources:

Parent savings or current income

  • Savers, 41 percent
  • Non-savers, 29 percent

Scholarships from college/state/other

  • Savers, 12 percent
  • Non-savers, 16 percent

Children’s student loans

  • Savers, 14 percent
  • Non-savers, 21 percent

Government grants or financial aid

  • Savers, 11 percent
  • Non-savers, 19 percent

Children’s savings or current income

  • Savers, 10 percent
  • Non-savers, 6 percent

Parent loans

  • Savers, 8 percent
  • Non-savers, 6 percent

Grandparents/friends/family contributions

  • Savers, 6 percent
  • Non-savers, 4 percent

Passing on Our Non-Saving Ways?

In some ways, non-savers plan to place a larger financial responsibility on their kids, expecting them to win more scholarships and take out more children’s student loans than savers do. However, non-savers expect their kids’ savings and current income to fund less than savers do.

The takeaway?

It would seem non-savers don’t expect their kids to be any better at saving than they are. Unfortunately, there is likely a great deal of truth to this, as children learn the bulk of their financial lessons from their parents, and by example.

Want to Teach Your Kids to Save (for College and Beyond)?

Improve your own saving ways:

And find fun, practical ways to teach lifelong saving habits to your kids.

 

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