photo: Low Jianwei via Flickr
Student loans continue to plague many millennial parents. And according to a new survey, a large majority are saving money because they don’t want to see their own kids suffer the same fate. Keep reading to find out more about how much other parents are putting away.
A recent survey conducted by TD Ameritrade looked at the financial trends among both millennial parents and their parents in regards to saving money for their children. The survey found that on average millennial parents still owed nearly $10,000 in student loans, and their parents still owed an average of a little over $1,000. One-third of millennial parents believe they will still be paying off their student loans when their own kids reach college age.
Despite still owing their own debts, millennial parents and grandparents were found to be saving towards their kids/ grandkids education, with parents naming it their top financial priority over their own retirement fund and down payments on a new home. Parents were saving an average of $310 per month and grandparents were squirreling away an average of $205. The press release points out that although the effort is impressive, parents should be careful not to sacrifice their own future savings for their kids, since there are no loans and scholarships that can fund retirement.
Are you building a college fund for your kids? Share your thoughts on student debt in the comments.