Survey finds N.H. college savings miss mark
New Hampshire families are projected to meet only 22 percent of college costs based on current and expected savings practices, according to a recent survey conducted by Fidelity Investments.
Fidelity’s College Savings Indicator calculates how prepared parents are to pay for future college costs, which are projected to be more than $100,000 for today’s high school seniors. The survey looked at the current and projected household asset level, including college savings, of 2,300 families nationwide with children 18 years and younger.
More than half of the New Hampshire families responding to the recent survey have college savings plans in place, however.
On the national level, parents with savings plans in place are on track to cover up to 52 percent of their children’s education cost, Fidelity said.
Of the families polled in New Hampshire, 52 percent said they had savings programs in place, contributing an average of $150 per month to those programs, and 29 percent had accounts dedicated to college savings.
New Hampshire families indicated they expected to fund 34 percent of their children’s education through college savings accounts, income at the time of child’s college years and general savings.
Parents expected their children to fund 37 percent of their own college costs through student loans, savings and work-related income, according to the survey.
Seventy-seven percent of parents believed their children would “appreciate college more if they share the responsibility of paying for it.”
Scholarships and grants were only expected to cover 19 percent of future college costs while personal loans and gifts were expected to cover 10 percent.
In addition, 69 percent of families shared concerns that “saving too much” would impact their child’s ability to secure financial aid. – TRACIE STONE