The Hidden Cost of Not Saving

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Many parents know that saving for their child’s education now can help them be financial successful in the future. However, not many parents are aware of how much it might help their child’s academic success. In fact, just having a savings plan can affect your child’s likeliness to even go to college!

Don’t believe us? Check out these facts from the Center for Social Development at Washington University St. Louis:

“Youth school savings and parental savings for youth are strong predictors of youth’s college expectations. In addition, they appear to have indirect effects on college progress, through expectations.”

“Controlling for other factors—including household income and children’s academic achievement—children with savings dedicated for college education are four times more likely to attend college.”

“When children have a savings account in their name, they are seven times more likely to attend college.”

Now we might only be experts in college savings, but the good people at Washington University St. Louis definitely know a thing or two about research, and these facts from them don’t lie: starting a savings plan for your child can do much more than save you money.

But don’t let these facts scare you if you haven’t started saving yet! The Center for Social Development also found that: “Children with $1 to $499 designated for school are 2.5 times more likely to enroll in and graduate from college than children with no account.” So, don’t worry about saving it all today! You can start your savings slowly, knowing that every little bit helps even more than you thought.

You see, saving for college isn’t about reaching your goals the day you start, it’s just about starting. And, if you are ready, check out our Florida 529 Savings Plan. Opening one today can help start your savings plan and make a difference to your child’s college success. Because nothing says “I believe in you” like an investment in their future.

And make sure to read Center for Social Development’s full summary of research to get a more comprehensive look at how a 529 savings plan could affect your child’s educational success.