More Parents Than Ever Are Saving for College, According to New Research From Fidelity Investments

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

BOSTON, August 26, 2026--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.

"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.