It’s a close split between 51% of Americans who’re saving for their retirement as opposed to 49% of Americans who’re saving for their kids’ education.
Parents under the age of 35 (60%) are more inclined to save for their kids’ education as opposed to reserving that money for their retirement, which accounts for 40% of Americans. Millennials (ages 18-34) are the most likely out of all the demographics to pay for their kids’ college rather than their own retirement.
Income levels are integral in the breakdown of how Americans choose to invest and save their money. Households whose annual income is less than $50,000 tend to save more for their kids’ education (57%) while 43% of Americans are saving for their own retirement. Americans who make more than $50,000 a year save more for their retirement (55%) while 45% of Americans chose to save for their kids’ education.
As the cost of college continues to increase in the United States, parents are now expected to help their children get out from crippling student loan debt. However, the average amount of savings for each American has decreased significantly since the economic crash of 2008. Parents are now being advised to make their retirement funding a top priority.
It’s getting increasingly difficult for parents to help their children in this economy. Due to the lack of grants and scholarships that are being offered, kids coming out of high school are given zero financial aid.
To learn more, see this research article here!
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