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

5. Many families are not saving at all

About half of families are not saving anything for college, according to the savings report. Many families who aren’t putting money away say they simply don’t have the money to do so (about 58%). Those families often have savings of about $49,013, about one-third the amount of that saved by families who save for college. Those families often prioritize savings for retirement (50% of the total savings) and buying a home or car (a combined 23%). And though it’s rather self-evident, more non-saving families feel overwhelmed by the prospect of saving for college than families who have begun saving for college (33% and 20%, respectively).

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

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

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