College has long been thought necessary for success later in life, and it is often assumed to be the best pathway for recent high-school graduates. While that may have been true in the past, there is a case to be made that college is not the only pathway to success today. One factor to consider: soaring tuition rates that have long outpaced inflation. Parents can (and often do) utilize 529 accounts to help their children pay for college, but not all parents may be aware of how much they really need to save.
The investment firm Fidelity recently released its 2024 College Savings Indicator Study, “designed to measure parents’ college savings behaviors, attitudes and expectations.” The survey has been conducted regularly since 2007 and polled 1,985 families with children under the age of 18 who intend to go to college.
Some of the resulting figures are hopeful: 74 percent of parents surveyed stated that they are saving for college (compared to 58 percent in 2007), and 77 percent agreed that college education is worth the cost. Yet the same study reveals that only 30 percent of families are on track to cover their anticipated college costs. One possible reason for this: inflation. In just the last 20 years, private colleges and universities have increased their tuition 40 percent, out-of-state tuition at public colleges and universities has risen 38 percent, and in-state tuition at public colleges and universities has risen 56 percent, all adjusted for inflation.
Gen Z-ers will likely need to spend more of their own money for college than their parents intended.Not only has the cost of college exceeded inflation in other sectors, but many Americans have begun to question the value of a college education entirely, according to the most recent Varying Degrees study. Earlier this year, 66 percent of respondents (and 54 percent of Gen-Z respondents) stated that they “strongly agree” or “somewhat agree” that it is possible to have a successful career without a degree.
Parents of Gen Z students may push for their children to attend college, but Gen Z-ers will need to carefully consider their options. This is particularly due to the fact that they will likely need to spend more of their own money than their parents intended. Eighteen-year-olds are often told that their future college degree will provide them with a job (and salary) that will outweigh the current cost, but the $1.74 trillion on the U.S. student-debt balance sheet begs to differ.
While many professions do require a college degree, many do not. Recent high-school graduates should make sure to attend college because they truly want and need to, not just because their parents expect them to. High-school students should be told about all of their options: trade schools, traditional colleges, or even simply entering the workforce. As with many decisions in life, students should arm themselves with as much information as possible before making a call that will hugely affect their future.
Grace Hall is a communications assistant at the James G. Martin Center for Academic Renewal. She works and lives in Georgia.
This article was originally published at www.jamesgmartin.center
