Press release
T. Rowe Price: Many Parents Say College Costs Aren't Their Responsibility But Most Kids Expect Them To Cover
BALTIMORE, Aug. 8, 2019 /PRNewswire/ -- T. Rowe Price's 2019 Parents, Kids & Money Survey, which sampled 1,005 parents of 8- to 14-year-olds and their
About this update from T. Rowe Price Group, Inc.
[{"type":"text","content":" BALTIMORE, Aug. 8, 2019 /PRNewswire/ -- T. Rowe Price's 2019 Parents, Kids & Money Survey, which sampled 1,005 parents of 8- to 14-year-olds and their kids, found that more than one-third of parents are uncomfortable discussing saving for college with their kids and few of them are having frequent conversations about saving for college. The lack of communication may help explain why there is a disconnect between kids' and parents' expectations about who foots the bill for college. \n\n \n \n\n \n\"Covering college costs can be kids' first experience with conceptualizing a long-term goal\" says Judith Ward, CFP®, a senior financial planner at T. Rowe Price and mother of two college graduates. \"The hesitation to discuss saving for college is a missed opportunity that not only lends itself to misunderstandings about who may be footing the bill for college, but also has implications for how kids think about money going forward and balance short-term and long-term needs into adulthood.\n\"While we think there is an opportunity for parents to have more conversations about college costs with their kids, it's great to see that 529 college savings accounts are the most popular way to save for college, given their tax advantages and underlying investment options. Additionally, most parents would consider sending their kids to a less expensive school to avoid student debt, representing a much-needed cost consciousness in the college selection process,\" says Ms. Ward. \nTo help parents discuss money with their kids, T. Rowe Price created MoneyConfidentKids.com, which provides free online games for kids; tips for parents that are focused on financial concepts such as goal setting, spending versus saving, inflation, asset allocation, and investment diversification; and classroom lessons for educators.\nDISCUSSING COLLEGE COSTS\nParents are almost as uncomfortable discussing saving for college with their kids as they are discussing drugs, sex, and school safety: Thirty-six percent of parents say they are very or extremely uncomfortable discussing saving for college with their kids, only slightly less than the percentage of parents that say they are very or extremely uncomfortable discussing school safety (38%), sex (38%), and drugs (37%) with their kids. Few parents frequently discuss long-term topics such as saving for college: Only 20...