Parents of high school children say the past year has seen a significant drop in how much of their kids' college education costs they can cover.
The findings come in Fidelity Investments' third-annual College Savings Indicator study.
Fidelity says it found that parents can cover only 11 percent of the total cost of their children’s college education. That's down from 15 percent in 2008. This is a concern, Fidelity notes, because the cost of a college education continues to rise at 5.8 percent a year, totaling an estimated $124,400 for today’s high school seniors.
On the bright side: This year’s study found that more parents of college-bound children, aged 18 and younger, have started saving and are better utilizing tax-advantaged savings accounts such as 529 plans. Still, the "challenging economic environment of the past year" has impacted overall savings levels, Fidelity reports.
A Connecticut Commission on Children blog highlighting news articles and other information on how children are faring in this crisis.
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