How America Saves for College 2018
By Sallie Mae® and Ipsos
College savings are the highest since 2013
Parents have saved an average of $18,135.
Most college savings are in 529 plans
529 plans offer parents tax advantages that can help their savings grow faster. The average amount saved in 529s has nearly doubled since 2016, from $2,820 to $5,441.1
General savings accounts are still the most commonly used type of account for building a college fund. The average amount saved in savings accounts is $3,902, up 7% from $3,663 in 2016.
Investment accounts can yield a high return, but may be less accessible to the average saver. Parents have saved an average of $2,616 in investment accounts, 14% more than in 2016.
Parents are optimistic they’ll meet their college savings goal
$55,342 average savings goal
Most parents, regardless of the age of their children, are about one-third of the way there.
86% of the parents feel confident
Most parents with a college savings goal think they'll meet their goal by the time their child enters college.
Fewer parents plan to use their retirement savings
10% in 2018 vs 20% in 2016
College planning tip
If you haven’t set your savings goal, Sallie Mae’s College Planning CalculatorSM can help you create a customized plan.
Start your plan
Parents with a plan have double the savings
$22,169 planners
$9,208 non-planners
College planning tip
Kids should look for scholarships outside of colleges and universities, too. A scholarship search can help students—both undergraduates and grad students—quickly find scholarships that match their interests and area of study.
Search for scholarships
Smart habits help parents save more
Six in 10 make regular deposits to their college fund.
Three in 10 spend less on household and personal items.
Nearly one-fourth are increasing their income by working more hours.
More than 1 in 10 put the cash back from reward programs into college savings accounts.