This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Legg Mason Intergenerational Survey On College Finances Shows 72% Of Parents Believe Children Should Pay A Portion Of Their Own College Expenses

BALTIMORE, May 30, 2012 /PRNewswire/ -- Legg Mason, Inc. (NYSE:LM) released findings today from their 2012 Intergenerational Survey of College Finances highlighting that among mass affluent and affluent families, 72% believe that children should pay a portion of their college expenses. Over 1,000 parents with $250,000 or more in investable assets were surveyed to identify financial planning behaviors and expectations when it came to college funding.  A majority thought their kids should contribute a small portion of the total, while close to one-third thought they should contribute up to half. Only 7% thought children should contribute most of it and 2% believed children should be responsible for the full amount.

Parents who thought their children should contribute something cited the need to make sure they took college education seriously and appreciated it (63%), as well as to teach them some responsibility (34%). The 28% of parents who thought their children should not pay for any of their college expenses listed several reasons including: education is a parent's responsibility (41%); to stay focused on their studies (33%); to keep them out of debt (21%); or so they can enjoy the college experience (5%).

Funding college expenses for one or more children can be such a material event that it impacts the entire family for many years. Whether parents save in advance of college with 529 plans, or make up the underfunded portion through the use of current income, drawing from savings accounts or loans, it seems that most are making their children aware of the family's sacrifices in order to appreciate the importance of getting the most out of college.

"Almost three-quarters of all surveyed parents have decided to use the college experience as an opportunity to teach their children not just about overall responsibility, but also about fiscal responsibility," said John Kenney, Head of Legg Mason's Global Asset Allocation (LMGAA) Group. "Many parents also used the time leading up to college as an opportunity to impress upon their children the impact college expenses can have on their life even beyond the college years."

Parents discussed financial topics such as:

  • Budgeting: 85%
  • How to invest: 53%
  • Earning money: 94%
  • How their college will be paid for: 87%
  • Savings planning: 78%

They also discussed college funding topics such as:

  • The need for children to contribute to expenses: 73%
  • The types of schools they can afford: 67%
  • Scholarship options: 82%
  • The impact of carrying a student loan: 63%
  • The expenses that come with college: 92%

"These numbers are encouraging as they indicate that parents are teaching their college-aged children to budget wisely and to understand the importance of proper saving and investment behavior, including the negative impact of excessive debt," noted Kenney. "As parents we all want a better life for our children, achieving that goal requires a commitment to a greater level of fiscal responsibility."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs