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Half of parents have talked to their children about saving for college by middle school and expect them to contribute according to Upromise by Sallie Mae survey

May 27, 2014

Parents plan to help their children with college applications and keep them on parental payroll following graduation

NEWARK, Del.--(BUSINESS WIRE)-- Preschool to high school graduations foster thinking about future aspirations, especially educational goals. According to a recent survey conducted by Upromise by Sallie Mae, American parents of toddlers, teens and all ages in between plan to contribute to their children’s financial future in more ways than you might think.

Half of parents will discuss the importance of saving for college with their children when they are in elementary school, with four in five planning to discuss it by the time the child is a teenager. When considering paying for college, most parents expect their children to contribute: three in five parents expect their teenagers to have afterschool or summer jobs during high school, even parents whose children won’t reach working age for some time. There is a clear purpose in mind for the earnings: 83 percent expect their children to allocate some of those funds towards their college education, with 31 percent stating that their children should reserve half or more of their earnings for college costs.

“Parents support their children in so many ways and especially want to help them succeed in their educational careers,” said Erin Condon, vice president, Upromise by Sallie Mae. “I started planning and saving for college when my oldest of three daughters was born, beginning with Upromise and a 529 plan.”

Parents of kids of all ages, even those of preschoolers, expect to take an active role in their children’s college application processes. Ninety-two percent are willing to offer assistance completing the application; including recommending which key accomplishments to feature, proofreading and editing. Two percent will even complete the entire process for their children.

Parental support doesn’t always end on graduation day. Roughly 85 percent of parents, including those with young children, plan to offer their children monetary aid after college graduation, mostly through providing health insurance, assisting with rent or putting up their post-graduates at home. Almost one in three expect to provide their children with financial assistance for up to six months, and approximately 50 percent plan to help foot bills anywhere from six months to more than five years.

Now is the perfect time for families to think about how they’ll each contribute to college and to save whenever possible. A simple step is with Upromise where families can save with cash back for college from everyday purchases. Upromise members have earned more than $850 million in their accounts and have deposited well over $100 million of that directly into their 529 college savings accounts.

Upromise by Sallie Mae conducted this survey of more than 800 parents with children ranging in age from infant to college-aged in May 2014.

Join the conversation on how to save, plan and pay for college at Facebook.com/SallieMae and Twitter.com/SallieMae.

Sallie Mae (NASDAQ: SLM) is the nation’s No. 1 financial services company specializing in education. Whether college is a long way off or just around the corner, Sallie Mae turns education dreams into reality for American families. With products and services that include Upromise rewards, scholarship search and planning tools, private education loans, insurance, and online banking, Sallie Mae offers solutions that help families save, plan, and pay for college. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.




Sallie Mae

Debby Hohler, 617-454-6741

dhohler@upromise.com

Source: Sallie Mae


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Source: Business Wire