Two-thirds of parents are skimping on vacations and major purchases to save for their children's college tuition, according to a Citizens Financial Group survey.
This development highlights how expensive college has become over the years, and it shows how much parents will sacrifice to keep their children out of debt. However, vacations aren't the only things parents will give up to minimize the financial toll of tuition.
You Can't Be Too Prepared
It's no secret that college tuition has soared for many years, but most parents are still surprised by the sticker shock of high tuition. About 60% of parents felt confident about covering costs when their child was accepted into a university, according to Citizens. However, only 21% of parents actually felt prepared for the expenses once tuition bills arrived.
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This data demonstrates that you should save more than what you think is necessary for your child's college education. Many parents think they will have it under control until those bills arrive. It's better to overprepare than to scramble while your child is in college.
That's why many parents reportedly don't spend as much money on vacations and big purchases as their children get closer to attending college.
Other Sacrifices Parents Made To Afford College
Parents made a few other big sacrifices to keep their children out of student debt, the Citizens survey found. More than 60% of parents expect to retire later because of college tuition, with 40% anticipating a delay of one to five years. Another 26% paused investing entirely while their children were in college, and 19% took on a second job to make ends meet. Finally, 30% of parents borrowed against their 401(k) plans or liquidated their personal funds.
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To top it all off, most parents prefer to be the unsung heroes who pay tuition. Rather than talk about how much college costs and how they're making ends meet, parents cited a few topics they'd rather discuss.
Almost half of parents would rather talk to their kids about drugs and alcohol than the cost of college, and 30% would rather talk about politics. It's hard to talk about for most families because most of them are falling short. Nearly 75% of families fell short by at least $5,000, and some of them are short by more than $30,000, the Citizens survey found.
College Tuition Isn't The Only Thing That's Going Up
Although tuition steadily rises, it's not the only budget item that's getting more expensive. This reality showed up in the Citizens survey, where 58% of parents said that the soaring cost of living has compromised their ability to pay for their child's college costs.
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Rising costs have caused more families to tread water, and that's led to higher credit card debt. Almost 40% of the surveyed parents said that they are also struggling to keep up with credit card debt and other financial obligations.
Parents are willing to incur a lot of sacrifices to send their children to promising colleges. Having children apply for scholarship opportunities or having your kid pick up a side hustle can make college tuition easier to afford. You can also consider alternative routes for your child, such as a community college, trade school, or homeschooling.
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