Parents are concentrating on their own future, according to a recent study from Sallie Mae and the Ipsos research firm.
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The study found only 10 percent of parents plan to withdraw money from their retirement funds to pay for their kids’ college education. This is down from 20 percent in 2016.
“This means parents are getting focused and they are taking their own financial future very seriously,” financial expert Chris Hogan said of the study to Maria Bartiromo on “Mornings with Maria.”
To stay the course, 61 percent of parents said they contribute a set amount to their college fund on a regular basis. Furthermore, 30 percent said they cut back on paying for personal necessities, while 27 percent cut back on household expenses.
This means parents and kids will need to work together, Hogan said, to understand there are many other options, including walking through and understanding scholarships that are available and working while in school.
The average cost of tuition and fees for the 2017-2018 school year was $34,740, not including room and board, according to the College Board. Kids should understand their options to go to school debt free, Hogan said.
“Parents need to help these young people do math,” he added.