Senior Account Executive
Managing Director, Savings Plans
First National Bank
Director of Communications
Nebraska State Treasurer's Office
New Study: 71% of Americans Have Never Contributed to a 529 Plan
‘National 2020 College Savings Survey’ Released by Nebraska’s NEST 529 College Savings Plan
PLUS: 30% of Americans report their student loan debt is higher than their credit card debt
Lincoln, Neb. (TK) - In recognition of National 529 College Savings Day (5/29), Nebraska’s NEST 529 College Savings Plan released the results of its ‘2020 College Savings Survey’. The national survey covered an array of topics to better understand Americans’ behaviors, attitudes and priorities as they relate to college savings and higher education.
According to the survey, 71% of Americans report they have never contributed to either their own or a friend/family member’s 529 plan - and 52% of Americans report they are unfamiliar with 529 plans. When asked about debt, 30% of respondents report their student loan debt is higher than their current credit card debt.
“Higher education is a critical step on the path to future success, so it is imperative that families plan for the high costs associated with opening these doors,” said Nebraska State Treasurer John Murante, Trustee of NEST 529. “National 529 Day is an opportunity to raise awareness for one of the best resources in the college savings space – 529 college savings plans. It is my hope that families across our nation continuously engage in these important conversations and take advantage of all the resources available to help them pave the path towards achieving a debt free future.”
Among the survey’s additional findings:
- COVID-19 and College: 42% of respondents think high school graduates should wait until college classes resume in person before enrolling in college.
- Stimulus Check Contributions: One quarter of Americans report that they have or plan to put stimulus check funds towards college savings.
- Adult Education: 46% of adults report they have pursued continuing education as an adult and an additional 19% report that they plan to.
- Footing the Tuition Bill: Over half (54%) of Americans think college should be paid for by a combination of both the parent and child, whereas one quarter (25%) think higher education should be paid solely by the parent. The most common methods that respondents are paying for higher education include scholarships (30%), personal savings (30%), financial aid (27%), student or parent loans (23%), 529 college savings plans (17%).
- Retirement Savings: 47% of Americans report it is difficult to balance saving for retirement with saving for higher education.
- Parenting Habits: One third of Americans currently or plan to give their child an allowance, and 35% of current parents feel their child is receiving an adequate financial literacy education.
“This data shows that the college savings community has much work ahead of us in continuing to educate and spread the word about the advantages and accessibility of 529 plans for all Americans,” said Deborah Goodkin Managing Director, Savings Plans, First National Bank of Omaha. “This 5/29 Day we are thrilled to inspire families to have the important conversations about planning for higher education with their loved ones. While it’s always better to start the savings process early, it’s truly never too late to achieve one’s higher education hopes and dreams.”
This survey is a follow-up to NEST 529’s 2019 College Savings Survey, which found 57% of Americans were unfamiliar with 529 plans.
The study was conducted online using Survey Monkey. One thousand participants were polled, spanning across the United States. The demographic of those polled represented a broad range in generation, geographic location, and gender.
About NEST 529
NEST 529 is a tax-advantaged 529 college savings plan and provides four plans to help make saving for college simple and affordable: NEST Direct College Savings Plan, NEST Advisor College Savings Plan, TD Ameritrade 529 College Savings Plan, and State Farm 529 Savings Plan. The Nebraska State Treasurer serves as Program Trustee. First National Bank of Omaha serves as Program Manager, and all investments are approved by the Nebraska Investment Council. Families nationwide are saving for college using Nebraska’s 529 College Savings Plans, which have more than 275,000 accounts, including over 89,000 in Nebraska. Visit NEST529.com and treasurer.nebraska.gov for more information.
About First National Bank of Omaha
First National Bank is a subsidiary of First National of Nebraska. First National and its affiliates have more than $23 billion in assets and 5,000 employee associates. Primary banking offices are located in Nebraska, Colorado, Illinois, Iowa, Kansas, South Dakota and Texas.
Investments Are Not FDIC Insured* · No Bank, State or Federal Guarantee · May Lose Value
*Except the Bank Savings Investment Option