While Americans’ faith in the value of higher education remains strong, many believe they aren’t saving enough for it — and many are unaware about how they can save for it using tax-advantaged plans, according to a recent report.
Fifty-five percent of Americans say their perception of the importance of saving for higher education hasn’t faltered in light of current socio-economic conditions in the country, Edward Jones says it found in a survey of 2,220 adults ages 18 and over.
At the same time, however, 45% of respondents don’t feel like they’re putting away enough money to cover education expenses, according to the survey.
What’s more, only 40% of Americans realize that 529s are a tool for saving for education, Edward Jones says. A little over half of respondents said they either didn’t know or couldn’t answer the question, according to the survey.
In addition, only 19% of respondents knew that 529s can be used to fund more than higher education, Edward Jones says.
"We're excited to see that Americans' steady focus on education savings has not wavered despite continued curveballs like inflation and rising costs," Steve Rueschhoff, principal, managed investments and insurance at Edward Jones, said in a statement. "That said, Americans are leaving money on the table by not leveraging critical savings strategies such as 529s.”
Financial advisors may have a captive audience: Of the Americans who are concerned they’re not saving enough, 23% believe working with an advisor would help them get peace of mind around college savings and budgeting, the survey shows.
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