Teenagers and Parents in Agreement? When it Comes to Preparing for College the Answer is Resounding Yes, According to Latest Survey from Upromise by Sallie Mae
Some say it’s rare that teenagers and parents agree on much, but when it comes to expectations about college, college-bound teens’ and parents’ views are strikingly similar, according to a new survey from Upromise by Sallie Mae. The online survey of more than 500 students and 500 parents found both groups are concerned about paying for college and budgeting for life after college. In fact, nearly half of parents and students expressed concerns about college costs, while fewer than one in four said academic performance was their top concern.
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Fifty-two percent of parents and 48 percent of students say they wished they had started saving for college sooner. Nearly three quarters of both students and parents agree that the student will need to help pay for college by holding down a part-time job while in school.
The survey and related infographic also reveal the expectation of financial support does not end after turning the tassel at college graduation. Approximately 65 percent of parents expect to support their children for up to five years after college graduation. The proportion of parents who think they will need to help out for more than two years jumped to 36 percent, double what a similar Upromise survey in 2014 reported. Sixty-eight percent of students expect financial support from their parents post-graduation. Nearly half of students, however, would be willing to pay rent to live back at home.
Students and parents are both optimistic about employment opportunities post-college graduation. In fact, two-thirds of parents and students think the student will obtain a job in his or her chosen field within six months of earning a degree.
“Many of us assume that parents and teens have opposing viewpoints, especially on the subject of money, but these findings show that both generations are in sync when it comes to the challenges of preparing for college,” says Erin Condon, president, Upromise by Sallie Mae. “The good news is that it is never too late to start saving and there are tools and resources available to get you on the right track no matter where you are in the process.”
Free and easy to join, Upromise by Sallie Mae offers families cash back college savings on everyday purchases at more than 850 retailers including BestBuy.com, Macy’s, WalMart.com, Land’s End, and Nordstrom. Upromise members have collectively earned more than $900 million in cash-back rewards since the program’s inception. Upromise members can earn higher cash-back rewards and grow their college savings more quickly with the Upromise MasterCard. Upromise MasterCard holders earned more than $50 million in cash-back rewards last year.
Earlier this year, Sallie Mae introduced its new 1-2-3 approach to saving for college:
- Open a savings account. Set up and designate a savings account as your college fund. Deposit gifts from friends and family, and sign up for free services that let you earn cash back to save for college.
- Make regular contributions. Set a goal, and create a routine of adding money. Even a little bit adds up over time, and automatic deposits make saving easy.
- Explore tax-advantaged options. Put your money to work using dedicated college savings programs like Coverdell Education Savings Accounts, prepaid state college savings plans, and 529 college savings plans.
Sallie Mae (NASDAQ:SLM) is the nation’s saving, planning, and paying for college company. Whether college is a long way off or just around the corner, Sallie Mae offers products that promote responsible personal finance, including private education loans, Upromise rewards, scholarship search, college financial planning tools, and online retail banking. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.
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