Parents Will Fund New Definition of Higher Ed Focused on Lifelong Career Preparedness, finds College Savings Foundation in 20th Annual Survey

1,000 parents of children under 25 say higher education is a good investment in their future

WASHINGTON, Aug. 6, 2026 /PRNewswire/ -- The vast majority of parents in the US, 84%, believe that higher education is a good investment in their children's future, and perceive it as a broader lifetime journey of career and technical education beyond the traditional college degree.

These are among the key findings of CSF's 20^th Annual State of Higher Education Savings survey of 1,000 parents of children from pre-school through age 25. Career and workforce-preparedness emerged as a dominant theme, as 85% of respondents expect that their children will need to continue their education or gain additional skills throughout their lives. Infographic here.

As such, 93% said they will help fund higher education and believe that career and technical schools are as valuable as college. Among those, more than half said that savings was their primary funding strategy; another quarter will rely mostly on grants, scholarships, or direct aid; and 10% will rely primarily on loans. 

"Today we are seeing the benefits of Congress' vision 30 years ago to encourage savings through 529s education plans. By expanding their use to a variety of career and technical training, we are fueling a more competitive workforce," said Chris McGee, Chair of College Savings Foundation (CSF), a leading nonprofit helping families save for a lifetime of education.

"That is why we are pleased to see that a full 50 percent of parents we surveyed use 529 education savings plans," he added.

The survey revealed the multigenerational impact of 529s at a time when early beneficiaries are now planning for their own families. 41% of all parents said that funds from a 529 higher education savings account helped to pay for their education and 77% are motivated to save for their children. Among parents themselves, 44% will need education for their own careers, and 46% would use a 529 for that purpose.

The Possibility of Debt Still Looms

At the same time, student debt at $1.8-trillion clouds the higher ed landscape; and the survey found that 71% of parents anticipated taking on some debt, through education loans (46%); credit card debt or cash advances (21%); and borrowing against retirement (11%) among other choices.

"We know that families face difficult decisions and often combine a variety of funding options to pay for higher education. That's one reason we hope to raise more awareness of the benefits of putting aside small amounts early and regularly to offset debt," McGee said.

529s were established by Congress to encourage families to save over time by making earnings Federal tax-free for qualified tuition and expenses. Since then, lawmakers have expanded the use of 529s beyond traditional college to encompass career and technical schools, apprenticeships and, just last year, professional certifications. 

"We are seeing wider, more customized career paths for young people, to include certifications that can fast track them into well-paying jobs such as health care technicians and aircraft mechanics, or plumbing or HVAC specialists," McGee said. 

529 plans had $627.0 billion in assets and 17.3 million accounts (excluding pre-paids) as of 2Q 2026, according to ISS Market Intelligence.

The survey surfaced positive higher ed funding trends among parents and children: 

• 73% of all parents have saved more than $5,000 per child.
• 65% of all parents expect their children to contribute to higher ed costs; and, of those:
  • 46% said their children are saving in a 529 plan.
  • 45% expect their children to contribute more than one-third of the costs.
  • How? Through a job (38%); scholarships/grants/fellowships (25%); and their own savings 24%).
• 50% of all parents are saving in a 529 education savings plan and, of those:
  • Most (92%) are making automatic monthly (64%) or quarterly (28%) contributions, a tactic to reduce barriers to savings.
  • 52% are choosing 529s due to the ease of saving, 34% due to Federal tax- free earnings; and 11% because of flexibility in gifting.

With children ranging from pre-school to age 25, 53% of parents anticipate their children will attend traditional 4-year public and private colleges;12% say their children will attend 2-year colleges like community college; and a cumulative 13% say they will pursue career and technical schools, certifications or apprenticeships.

Parents want traditional college to be more career and job-focused:

Survey respondents reflected those interests. 56% of all parents say 4-year public or private college remains a valuable option, but an additional 41% said that their child should consider other higher ed options as well. 

When asked how the college experience needs to change, one third (35%) of parents said classes should include career needs and training; and one quarter (26%) said they should help with job placement.

Parents' awareness of 529s:

• 65% know that 529 plans can be used for more than traditional college.
• 65% are aware they can be used for computers books and technology software, including 20% planning to use them for those expenses.
• 61% know they can use up to $20,000 per year for K-12 tuition, including 21% who will use it for that.
• 58% are aware they can be used to pay $10,000 for student loans (lifetime limit per student) including18% who will do so.
• 49% are aware that unused funds in a 529 may be eligible for a tax-free rollover into a Roth IRA.

CSF's 20^th Annual State of Higher Education survey of 1,000 parents was conducted by Survey Monkey. CSF is a Washington, D.C.- based not-for-profit organization helping families achieve their education savings goals for a lifetime. www.collegesavingsfoundation.org

Media contact: Lynthia Romney, [email protected] 

SOURCE The College Savings Foundation