Eighty-four percent of parents surveyed have started saving for their children to go to college

More than 4-in-10 parents plan to pay for the full cost of their children’s college education

Families with a 529 plan have nearly twice as much saved for college as those without one

New research from Fidelity Investments reveals more parents than ever before are planning to cover the full cost of their children’s college education. The firm’s biennial College Savings Indicator study found 41% of parents plan to cover the full cost of their children’s college education, up from 37% in 2024. Even among parents who only plan to cover a portion of the cost, the amount they plan to cover is 55% on average, up from 52% in 2024. Conversely, those parents have lower expectations for how much they expect their children to cover – 38%, down from 41% in 2024.

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Chart showing parents’ top savings priorities. Saving for a child’s education ranks first at 74%, followed by saving for retirement at 61% and saving for an emergency at 59%.

“We’re seeing a meaningful shift in how families are thinking about paying for college, with many parents choosing to take on more of the overall cost of their children’s higher education,” said Amanda Verstegen, SVP, Head of Savings and Lending at Fidelity. “Parents increasingly want to reduce the financial burden their children may face after graduation, and many are taking proactive steps to do so. Whether motivated by their own experiences with student debt or a desire to create more opportunities for their children, parents are recognizing the importance of starting early and saving consistently to make education goals more achievable without having to sacrifice other long-term financial priorities.”

Parents Doubling Down on College Savings, but Still Have Ground to Cover

Even as the average cost of a four-year degree continues to climb¹, more than 8-in-10 parents (81%) agree the value of a college education is worth its cost. That confidence in the long-term value of higher education is translating into action, with more families actively setting aside funds for college. A record 84% of parents have started saving for their children to go to college, up from 74% in 2024, and 38% have started saving in an account dedicated to college savings. Parents report saving around $9,000 a year toward their children’s college education on average. Among those who haven’t started saving yet, the top three barriers are having other more pressing financial priorities (68%), feeling too overwhelmed to start thinking about it (44%), and not knowing how much to save (36%).

Despite setting lofty savings goals, many families continue to face challenges in translating those ambitions to reality. Less than half (44%) of parents who plan to cover at least some of the cost of college and have started saving are on track to actually meet those goals. On average, parents hope to pay for 72% of their child’s education, and are on track to meet 53% of that goal. While they’re closer to their goal than in past years, families will still need to figure out how to make up for that shortfall.

529 Savers Have Nearly Twice as Much Saved for College

As more families look for tax-advantaged ways to save, 529 college savings accounts continue to emerge as an attractive option. Nearly half (45%) of families have opened a 529, up from 39% in 2024. Not only do those families have higher expectations for how much they plan to save for their child’s education, but they’re also more likely to meet those savings goals. Parents who have opened a 529 have nearly two times saved on average compared to those without ($45,752 versus $24,387), and are on track to meet 57% of their savings goal (48% among those without a 529). Parents saving in a 529 are also significantly more likely to have a financial plan in place to meet their college goals.

“The data consistently shows that families who choose to save in a dedicated college savings account are able to make more meaningful progress toward their goals,” added Verstegen. “Establishing an account like a 529 early on can give families a powerful leg up that can help them turn aspirations into reality.”

Student Debt Experience Driving Parents to Save More Aggressively

Parents continue to worry about how student loan debt might impact their children’s future and many appear determined to help them avoid the financial tradeoffs they had to make themselves. Nearly 9-in-10 (88%) parents say their own student debt is motivating them to help their kids save more for college. More than half of parents (55%) say paying off their loans delayed them from starting to save for retirement, and 48% say their loans hindered their ability to save for their own children’s college education. Together, these findings suggest many parents are seeking to turn lessons learned from their own financial journeys into greater opportunities for the next generation.

Parents Weighing the Potential Impact of AI

Beyond financing concerns, parents are also considering how broader economic and technological trends might shape their children’s futures. 73% of parents believe artificial intelligence (AI) will influence which major their child chooses for college. Nearly half (49%) think AI will make some jobs obsolete or more difficult to get, while 32% believe it will increase available job opportunities. Even amid uncertainty about how AI might shape future careers, most parents continue to view higher education as a worthwhile investment.

Need assistance in your college planning? Fidelity can help.

• Learn more about how to approach college planning at our College Planning Resource Center
• Find tools and resources to understand the true cost of student loan debt at Fidelity.com/StudentDebt
• Access support by visiting a Fidelity Investor Center near you or talk to our dedicated college planning representatives by calling 1-800-544-1914

About the 2026 College Savings Indicator Study

Fidelity conducted a survey of parents with college-bound children of all ages. Parents provided data on their current and projected household asset levels including college savings, use of an investment advisor and general expectations and attitudes toward financing their children’s college education. Using Fidelity’s proprietary asset-liability modeling engine, the company was able to calculate future college savings levels per household against anticipated college costs. The results provided insight into the financial challenges parents face in saving for college. Data for the Indicator (number of children in household, time to matriculation, school type, current savings and expected future contributions) was collected by Big Village, an independent research firm, through an online survey from May 4-15, 2026, of 2,081 families nationwide with children aged 18 and younger who are expected to attend college. The survey respondents had household incomes of at least $30,000 a year or more and were the financial decision makers in their household. College costs were sourced from the College Board’s Trends in College Pricing 2025. Projected college savings available at the assumed college start date per household were computed by Fidelity Personal and Workplace Advisors LLC (FPWA), a registered investment adviser and a Fidelity Investments company. Within Fidelity’s asset-liability model, Monte Carlo simulations were used to project assets in the future at a 75 percent confidence level. The results of the College Savings Indicator may not be representative of all parents and students meeting the same criteria as those surveyed for the study.

About Fidelity Investments

Fidelity’s goal is to strengthen the financial well-being of our customers and deliver better outcomes for the clients and businesses we serve. Fidelity’s strength comes from the scale of our diversified, market-leading financial services businesses that serve individuals, families, employers, wealth management firms, and institutions. With assets under administration of $19.9 trillion, including managed assets of $7.8 trillion as of June 30, 2026, we focus on meeting the unique needs of a broad and growing customer base. Privately held for 80 years, Fidelity employs more than 80,000 associates across North America, Europe, and Asia-Pacific. For more information about Fidelity Investments, visit https://www.fidelity.com/about-fidelity/our-company.

Please carefully consider the plan's investment objectives, risks, charges, and expenses before investing. For this and other information on any 529 college savings plan managed by Fidelity, contact Fidelity for a free Fact Kit, or view one online. Read it carefully before you invest or send money.

Units of the portfolios are municipal securities and may be subject to market volatility and fluctuation.

Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.

Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information.

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¹ College Board’s Trends in College Pricing 2025

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