Half of College-Bound Teens Considering a Gap Year or Delaying College
May 18 2017 - 8:30AM
Business Wire
TD Ameritrade survey uncovers teenage dreams
and anxieties for life after high school
Cap and gown season is in full swing, and parents of the class
of 2017 are preparing for the reality of an empty nest come fall.
In spite of the climbing costs of college tuition, a majority of
teens expect to continue their education after high school with
two-thirds (65 percent) planning to attend college at some point.
Nearly half (49 percent) of respondents are hanging college hopes
on snagging a scholarship. That’s according to the 1,000 teens
(ages 13-19) who took part in TD Ameritrade’s Teens and Money
survey.
“With so many teens expecting to attend college, it’s more
important than ever for families to have open conversations about
what those plans will cost. It’s an opportunity to put all the
cards on the table to set expectations on who’s paying for what,”
said Carrie Braxdale, head of investor services at TD Ameritrade.
“Speaking with your kids early and often about all of the options
available to them after high school empowers them to take steps to
work toward their dreams.”
Life after High School
- More than a third (35 percent) are
thinking of taking a gap year between high school and college
- Three in ten are considering a two-year
instead of four-year degree
- Nearly 20 percent say they may delay
college due to expense
- Technical degrees or trade school are
seen as options for one in five teens (20 percent)
- Four percent of teens aren’t planning
to pursue any post-secondary education
Stephanie Q., an 18-year old from the Chicago suburbs, plans to
enroll at the University of Illinois in the fall. “Everyone in my
circle of friends is heading straight to college, whether it be a
big name school or community college,” she says. “I’ve definitely
noticed that community colleges are getting way more popular. It’s
seen as a way to get the basics out of the way more cheaply before
transferring to a four-year college or university.”
Teens who expect to go to college feel that college is:
- The best way to achieve career goals
(70 percent) and earn a higher income (53 percent)
- Something their parents want them to do
(45 percent)
- An experience they don’t want to miss
out on (40 percent)
Costs Are Top-of-Mind So Teens are Taking Matters into Their
Own HandsThe top concerns about going to college are all
financial. Teens worry about struggling to pay the tuition (19
percent), taking on too much debt (15 percent) and finding a good
job after college (13 percent.) Of those teens expecting to go to
college:
- Six in 10 (63 percent) are saving for
their own education, with one-third (32 percent) having more than
$1,000 saved and one in 10 (10 percent) having $5,000 or more
- A quarter (24 percent) have parents who
have not or will not save for their college
- One in five (21 percent) don’t know if
their parents are saving for their college
- More than 20 percent (21 percent)
believe their grandparents are saving for college
- Teens expect to pay for some or all of
their text books (65 percent), other living expenses (65 percent),
tuition (51 percent) and room and board (48 percent)
“It’s fantastic to see a majority of college-bound teens saving
for the related expenses. Clearly, teens understand the escalating
costs of college and aren’t expecting their parents to foot the
entire bill,” said Braxdale. “The harsh reality is that paying for
college may be the toughest part of earning a degree. Teens and
their parents shouldn’t wait to explore the various college savings
plans available to them – start as early as possible. Remember that
no amount is too small to take advantage of the power of
compounding interest so your college savings can pack the biggest
punch.”
Braxdale offers these college savings tips:
- Parents: Plan in advance, save early
and often. Create a sound financial plan for how your family will
cover costs. Clearly outline and talk with your teen about the
options available to pay for college, and how that fits into other
long-term financial plans.
- Teens: Don’t wait for your parents to
bring up the topic of saving for college; ask them what their plans
are and share yours. Stick to a budget and save as much as possible
from summer and part-time jobs to cut down on student loan debt in
the future.
Parents can learn more at TD Ameritrade’s saving for college
website and determine which savings plans might be right for them,
including 529 College Savings Plan, Coverdell Education Savings
Account and Custodial Accounts. Get to know more about Stephanie
and other members of the class of 2017 at Fresh Accounts.
About TD Ameritrade Holding CorporationMillions 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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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 GroupHead
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 2017 Teens and Money SurveyA 15-minute
online survey was conducted with 1,000 American teenagers age 13 to
19 by Head Solutions Group, between March 17 to 22, 2017,
on behalf of TD Ameritrade Holding Corporation. The
statistical margin of error for the total sample of N=1,000
American teens within the target group is +/- 3.1 percent. This
means that in 19 out of 20 cases, survey results will differ by no
more than 3.1 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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version on businesswire.com: http://www.businesswire.com/news/home/20170518005193/en/
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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