Preparing a financial strategy now for the future can be important to many working individuals, especially when looking to take care of their families. A number of expenses can factor into their budgets, and one major expense that could need some extra care is paying for higher education.
Approximately 51 percent of parents explained that the best way they can invest their money is in their child’s education, according to a report from HSBC. The same percentage felt that they should have started saving for these expenses at an earlier point in their lives. More than 35 percent noted that thinking about these costs can be quite stressful.
Nearly 90 percent of parents said that they think that their child will go to college, the report showed. Another 44 percent noted that their children need a college degree in order to better compete in the workplace.
“Education continues to be a top financial priority for parents, with the expectation that it will positively impact their children’s lives,” said Andrew Ireland, head of wealth management for North America at HSBC Securities USA Inc.
Close to four-fifths of those parents polled explained that their child’s education would be paid for either in part or completely by themselves, the report added.
Many young people plan to attend college
While many parents are looking to help their kids out when it comes to these payments, a number of young Americans are looking forward to getting to college. According to a report completed jointly between The Allstate Foundation and Junior Achievement USA, more than 90 percent of teenage girls felt that they would go to college or a trade school once they finished high school. Another 86 percent of teenage boys said the same thing.
“It is important for young women and men to understand their options – and the financial implications – for continuing their education,” said Jack Kosakowski, president and chief executive officer of Junior Achievement USA.
Close to 80 percent of girls felt that they would pay for college through grants and scholarships, while 66 percent of boys also noted this, the report showed. A total of 57 percent of boys explained that they would rethink their college plans due to how expensive it has become, and two-thirds of girls also planned to do this.
One way for some to save money is to stay in-state and attend a public school. The report added that 30 percent of boys and 40 percent of girls are interested in doing this.
More people save for higher education
Conserving money for college can be an important aspect to properly secure a strong financial future, and this is already a priority for a number of people. According to a report completed jointly between Ipsos and Sallie Mae, more than half of parents began saving for college.
The level that parents are saving for college is also picking up notably. The report showed that the average amount put away for higher education rose to an average of $3,398 this year, nearly 30 percent higher than last year’s level.
Parents are looking at paying off college bills in a number of ways. The report explained that the average parent with a financial strategy to pay for college will use 40 percent of the cost through their savings and income. Just 23 percent of those who do not have a set idea on how to pay for college said they would do the same. Another 50 percent noted that they would spend 10 percent of their total money saved up for their children’s college expenses.