Futuretrust(R) Hopes & Dreams Survey Reveals College Savings Concerns are Impacting Spending Habits and Economic Recovery
Majority of U.S. Parents Believe That They Will Not Be Able To Afford A College Education For Their Children And These Concerns Are Affecting Daily Living
PHILADELPHIA, June 24 /PRNewswire/ -- A new survey released today reveals that college savings concerns currently are or will affect the daily lives of 83% of parents, with 64% actively making changes to their current spending habits. The survey, commissioned by Futuretrust(R) and conducted by Harris Interactive(R), also finds that 92% of U.S. parents(1) expect to have to pay for their children's college education but more than half (57%) do not believe that they will be able to save enough money to afford college for their children.
Futuretrust's Hopes & Dreams survey was first conducted in 2007 and seeks to explore Americans' college savings concerns and how these concerns impact and are impacted by daily living and the economy. With unemployment on the rise, an uncertain economic future and college tuitions at an all-time high, the survey finds that American families are struggling to save for their children's college education.
Additional survey findings reveal that:
Parents Are Worried About Being Able to Afford College
92% of parents surveyed expect to pay for their child/children's college education(s), and most (90%) are currently facing obstacles saving. Nearly two thirds of those surveyed (62%) are depending on scholarships, loans, grants and/or financial aid while more than half of parents (53%) surveyed expect that their child/children will need to reconsider their college and/or university choices based on cost.
More Parents Are Struggling to Save for College in This Economy
60% of parents say that the economy is affecting their ability to save for college, a nearly 20% increase from last year(2). Of those, nearly one out of every two parents (45%) have stopped or decreased contributions to college savings. Forty-two percent (42%) say they have not started saving for their children's college education at all and, of those, 65% claim that they do not have room in their budget to put money away for college, up 18% from last year(2), and 45% said that they need to worry about more pressing financial concerns.
College Savings Concerns Are Having a Real Impact on the Economy
83% of parents cite that college savings concerns are currently affecting their daily lives or expect it to in the future, with 64% actively making changes in their spending habits due to these concerns including spending less on dining and eating out (47%), spending less this holiday season (42%) and taking fewer vacations this summer or spending less on the vacations they do plan to take (42%).
The survey also reveals that due to the economic environment, 56% of parents polled are seeking creative ways to save for their child's college education. One in ten (10%) is participating in rewards and incentive initiatives such as credit card programs like Futuretrust that make contributions to 529 programs for purchases.
Today, 529 college savings programs like Futuretrust are helping consumers save for college as active contributions become increasingly difficult. Futuretrust President and Founder Rebecca Matthias stated, "Even though most Americans have been affected by the current economy, it is encouraging to find that an increasing number of parents are actively looking for innovative ways to save for their child's college education. The Futuretrust card lets parents build a college fund for their kids simply through the purchase of everyday necessities like groceries and gas, without impacting already tight budgets."
About Futuretrust(R)
Futuretrust(R) is a MasterCard(R)-linked college savings program that enables families and friends to save for college through their everyday spending. Every time a purchase is made with the Futuretrust MasterCard, a minimum of one (1) percent is automatically contributed to any tax-advantaged 529 college savings plan of the member's choice. Members also earn up to ten (10) percent in additional college savings when they use the Futuretrust MasterCard at thousands of partners in the Futuretrust Preferred Merchant Network consisting of major retail chains, catalogs, restaurants, and on-line merchants. Members can also earn college savings rebates when they buy, sell, finance, or refinance a home. Futuretrust Banking Center turns everyday banking into college savings. Futuretrust is a no cost program. Membership is available online at www.futuretrust.com, by calling 1-888-trust68, or in store at any Motherhood Maternity(R), A Pea in the Pod(R) and Destination Maternity(R) locations.
About Harris Interactive(R)
Harris Interactive is a global leader in custom market research. With a long and rich history in multimodal research that is powered by our science and technology, we assist clients in achieving business results. Harris Interactive serves clients globally through our North American, European and Asian offices and a network of independent market research firms. For more information, please visit http://www.harrisinteractive.com.
(1) The Futuretrust "Hopes & Dreams" survey was conducted online by Harris Interactive on June 9-11, 2009 among 2,118 U.S. adults ages 18+, of whom 500 are, for the purposes of this survey, defined as "parents" and represent parents/legal guardians or expectant parents of a child or children who are likely to attend college in the future. This online survey is not based on a probability sample and therefore no estimates of theoretical sampling error can be calculated. A full methodology is available.
(2) Comparison data is drawn from The Futuretrust "Hopes & Dreams" 2008 survey that was conducted online by Harris Interactive on June 12-16, 2008 among 2,134 U.S. adults ages 18+, of whom 644 are, for the purposes of this survey, defined as "parents."
