For Millennial Parents, Supporting Little College Hopefuls Comes First
March 28 2017 - 8:30AM
Business Wire
TD Ameritrade survey: Millennials prioritize
post-secondary education for children over retirement savings as
many struggle with their own student debt
High school and college graduation season is just around the
corner. It’s a season of joy and pride for graduates and their
families – but more often than not, the achievement comes with a
hefty price tag.
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Preparing for the "real world." (Graphic:
TD Ameritrade)
College affordability is a challenge that weighs on the minds of
students and parents alike. And, for millennial parents, who are
more likely to be carrying student debt than their parents were,
it’s a particular pain point – one they do not intend to pass down
a generation. Although the vast majority of their children are
years away from graduation, most (90 percent) of these newer
parents already plan to pay at least some of their kid’s college
fees. That’s according to the 2,018 millennial parents and their
parents who took part in TD Ameritrade's Parents and Grandparents
College Savings Survey.
For this next generation of parents, paying part of Junior’s
college bill is not just something they plan to do – it’s one of
their top priorities. After all, one-third expect that they will
still be paying down their own student loans when their children
reach college. This helps explain why roughly one in five
millennial parents (19 percent) say education for their children is
their top financial priority, equal to the number that identified
emergency savings as tops. Retirement savings came in third, at 15
percent of parents.
Additionally:
- Latino/Hispanic and Asian millennial
parents are twice as likely as Caucasian millennial parents to
expect to pay all education fees (43, 42, and 23 percent,
respectively).
- Although nearly six in 10 (57 percent)
millennial parents do not expect their parents to help with college
fees, one in five (19 percent) grandparents contributed to a
grandchild’s college savings in the past year.
- Millennial parents who are saving for
their children’s education are saving an average of $310 per month,
with grandparents chipping in an additional $205.
Saddled with an average of $9,100 in student debt themselves,
millennial parents know all too well the high cost of a college
diploma. It’s clear they want to pave an easier path for their
kids, but it shouldn’t come at the expense of their retirement (for
which there are no loans, grants or scholarships).
“Nearly one-third of millennial parents say they would work
longer to make up the difference, but as we age, that’s not always
possible,” said Dara Luber, retirement and long-term investing
expert at TD Ameritrade “Their children, on the other hand, have
more options to help cover the cost of college. If you’re able to
swing it, parents can of course sock away money in a college fund,
or ask grandparents to contribute to future education needs, rather
than the toy box. Just be steadfast in your own goals. Parents are
much closer to cracking open that nest egg, and you want it to be
as full as possible.”
No matter the order of their financial priorities, all
millennials can benefit from having a clear financial plan in place
and holding themselves accountable to concrete goals along the way.
Setting financial goals is key, for them and their children, to
working toward a secure financial future.
About TD Ameritrade Holding Corporation
Millions of investors and independent registered investment
advisors (RIAs) have turned to TD
Ameritrade’s (Nasdaq:AMTD)
technology, people and education to help make
investing and trading easier to understand and do. Online or over
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sophisticated trader. Our clients want to take control, and we help
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Street for more than 40 years. TD Ameritrade has time and
again been recognized as a leader in investment services.
Please visit TD Ameritrade’s newsroom or www.amtd.com for
more information, or read our stories at Fresh Accounts.
Brokerage services provided by TD Ameritrade, Inc., member
FINRA (www.FINRA.org)/SIPC (www.SIPC.org).
Survey conducted by Head Solutions Group
Head Solutions Group (U.S.) Inc., is a leading market research
partner for Financial Services companies in North America.
With offices in New York, Toronto and Montreal,
Head delivers the deep customer insights that increase
institutional knowledge and propel business action. TD
Ameritrade and Head Solutions Group are separate and
unaffiliated firms and are not responsible for each other’s
services or policies.
About the 2016 Parents and Grandparents College Savings
Survey
A 18-minute online survey was conducted with 2,018 American
adults (half millennial parents age 19-37, half grandparents age
50-70 with adult children) by Head Solutions
Group, between Oct. 20 and Oct. 26, 2016, on behalf of TD
Ameritrade Holding Corporation. The statistical margin of error for
the total sample of N=2,018 American adults within the target group
is +/- 2.1 percent. This means that in 19 out of 20 cases, survey
results will differ by no more than 2.1 percentage points in either
direction from what would have been obtained by the opinions of all
target group members in the United States. Sample was drawn
from major regions in proportion to the U.S. Census.
Source: TD Ameritrade Holding Corporation
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TD Ameritrade Holding CorporationFor Media:Becky Niiya,
402-574-6652Sr. Manager, Corporate
Communicationsrebecca.niiya@tdameritrade.com@TDAmeritradePRorFor
Investors:Jeff Goeser, 402-597-8464Director, Investor
Relationsjeffrey.goeser@tdameritrade.com
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