A recent survey by the Certified Financial Planning board found that costly living expenses are preventing many parents from saving for their children's higher education. The findings also show that one-third of American parents are still repaying their own student loan debt, limiting their ability to save for their children's education.
More than two-thirds of parents surveyed reported that they have not started saving for their children's higher education because their everyday living expenses have left no additional funds to save. 48% say that their own student loan debt has prevented them from saving for any of their priorities including an emergency fund or retirement.
As the parent of a high-school senior and sophomore, it is scary to think how many young people are struggling with their everyday expenses and student loans, let alone saving money. Unfortunately, many kids graduate college with no clue of how finances work and how to make ends meet. It's about learning to live within one's means and not giving into the desire to have everything now. Making the tough choices early in life can have a major impact on one's financial situation in their 30s and 40s. As a client of SWA, if we can help provide counsel to your child as to how to get on the right financial path, please let us know as we would be glad to help.