More parents are putting money aside for their children’s college education, but many families still aren’t saving enough to meet their goals.
A new study from Fidelity Investments found that 84 percent of parents surveyed have started saving for their children’s college education, up from 74 percent in 2024.
The company’s 2026 College Savings Indicator also found that 41 percent of parents plan to pay the full cost of their child’s college education. That’s up from 37 percent two years ago.
Parents who don’t intend to cover the entire bill still expect to pay a significant portion. On average, those families plan to cover 55 percent of their child’s college costs.
But what parents hope to pay and what they are currently on track to afford are two different things.
Among parents who have started saving and plan to cover at least some college expenses, only 44 percent are currently on track to reach their savings goals.
Overall, parents hope to cover 72 percent of their child’s education costs but are on pace to meet about 53 percent of that goal.
So what’s getting in the way?
Among parents who haven’t started saving, 68 percent pointed to more pressing financial priorities. Another 44 percent said they felt overwhelmed by the process, while 36 percent didn’t know how much they should be saving.
Families that use 529 college savings plans appear to be further ahead.
According to the study, 45 percent of families surveyed now have a 529 plan, compared with 39 percent in 2024.
Those families have an average of $45,752 saved for college, nearly twice the $24,387 saved by families without a 529 account.
Student debt also appears to be influencing how today’s parents prepare for their children’s future.
Among parents surveyed who have dealt with student debt themselves, 88 percent said that experience motivates them to save more for their children.
More than half said paying off their own loans delayed saving for retirement, while 48 percent said student debt interfered with their ability to save for their children’s education.
Parents are also thinking about how artificial intelligence could affect the value of a college degree and the careers their children pursue.
Nearly three-quarters said they believe AI will influence which major their child chooses. Almost half believe the technology could make some jobs obsolete or harder to get.
Despite those concerns and the rising cost of higher education, 81 percent of parents surveyed still believe a college education is worth the cost.
The findings come from an online survey conducted in May 2026 among 2,081 families nationwide. Participants had children 18 and younger who are expected to attend college, household incomes of at least $30,000 and responsibility for their household’s financial decisions. Fidelity notes that the results may not represent every U.S. family.
