Parents expect students pay for third of college costs

BOSTON – Parents plan to cover about two-thirds of the cost of their children’s college education and expect the children to provide the remaining one-third from part-time jobs, saving and student loans, according to Fidelity Investments’ eighth annual College Savings Indicator Study.
While parents may have a target goal of providing that two-thirds of college costs, those surveyed are only on track to save 28 percent of that goal, according to the Fidelity survey released Aug. 20
“Parents are taking a team approach to college funding, which is perhaps a more practical way to look at it, since it can be valuable for kids to have some ‘skin in the game’ when it comes to their education,” said Keith Bernhardt, Fidelity’s vice president of college planning.
“Working together to talk through priorities and determine opportunities to save can help families develop a solid, realistic plan that they can stick to—which is imperative, given that most families need to step up their savings efforts to help meet college goals,” said Bernhardt.
Some practices to increase college savings include creating a road map that leads to the financial goals related to college costs, starting a 529 college savings plan and suggesting that friends and family make a gift to a college savings fund, rather than more traditional birthday or holiday gifts, according to Fidelity Investments.

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