5 Hard Truths About Saving for College and the Cost of Education

4. Many families struggle to set savings goals

Fewer than half of families saving for college have set a goal for how much they’d like to stash away. According to Sallie Mae’s sister report, How America Saves for College, 45% of families reported they had a specific number in mind. Savings goals are more likely to be set on how much families think they can afford (28%) instead of how much they think will be necessary to pay for the education (24%). Parents currently pay for an average of 10% of their child’s college costs from their savings accounts, and confidence rises to save that amount among those who plan for it, as well as those with higher income levels.

Source: Sallie Mae's 2014 How America Saves for College report

Source: Sallie Mae’s 2014 How America Saves for College report