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Raymond James Financial Services, Inc. Member FINRA/SIPC 

301 Yamato Rd. Ste. 3160 Boca Raton, FL 33431


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Click Here to view TheStreet.com publication this article was quoted on. 

According to the 9th Annual College Savings Indicator Study put out by Fidelity, “Generation Y’ers” are saving far more for their children’s future college expenses than previous generations. These young parents, many of whom are currently paying off their own student debt, plan on covering on average of 74% of their children’s college expenses.


As a Financial Advisor with Raymond James, I've had the opportunity to sit down with many Generation Yer’s and have heard 1st hand the justification behind this increased college savings. I have found the three following factors the most common justifications among Gen Y parents. 

  1. Increased necessity of a college degree in the workforce.

  2. Parents are currently paying off high student debt and don’t want that for their children.

  3. Parents have a better understanding of time value of money.


"The increased necessity of a college degree is by far the most common explanation for increased savings. Gen Y parents are viewing a college degree less of a value add, and more of a necessity, when entering today’s workforce. This may be why college savings is becoming a necessity within the Gen Y’ers budget."- A featured quote on TheStreet.com.


Many Gen Y parents are also currently paying off high student debt and experiencing the emotional and financial stress that comes along with it. Many Gen Y parents claim they don’t want this added stress for their children and 91% of parents who are currently paying off student debt, plan to reallocate those dollars towards their children’s college fund in the future.


This leads into Gen Y’s parents heightened awareness of the Time Value of Money. I’ve personally spoken to Gen Y parents who are currently paying $200-$600/month for their student loans. I feel now, more than ever, Gen Y parents understand that if they took those same dollars and put them into tax advantaged college savings vehicles, such as a 529 account, that their children may have a greater pool of money for college.


More and more Gen Y parents are relating to these three factors, among others, and as a result we are seeing the following increases in college planning. As mentioned earlier, according to Fidelity, Generation Y is planning to cover, on average, 74% of their children’s college costs compared to 64% for Generation X parents and 60% for baby boomer parents. Furthermore, 43% of Generation Y parents aim to pay for their children’s entire college education compared to only 32% of Generation X parents.


Don’t fall behind the trends, take advantage of the many different college planning vehicles available. If you would like to learn more about how you can save for your child’s future, feel free to contact me today.


Joseph Carpenito 

Financial Advisor 

Raymond James Financial Services, Inc.



The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Investors should carefully consider the investment objectives, risks, charges and expenses associated with 529 plans before investing. This and other information about 529 plans is available in the issuer's official statement and should be read carefully before investing. Investors should consult a tax advisor about any state tax consequences of an investment in a 529 plan. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material.



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