Battered college savings industry weathering the storm

Parents are still contributing to their children’s college funds, despite the ravages of the recession, according to research released today.
MAY 19, 2009
Parents are still contributing to their children’s college funds, despite the ravages of the recession, according to research released today. Assets in Section 529 college savings plans were down only 3% in the first quarter of 2009 from the fourth quarter of last year, dropping from $88.5 billion to $85.9 billion, according to data developed by Boston-based Financial Research Corp. and released today by the College Savings Foundation in Washington. But assets suffered a severe drop from a year ago, falling 22% from $109.86 billion in the first quarter of 2008. “Despite challenging economic times, families are continuing to invest in 529s at roughly the same pace as they did in the last quarter,” CSF chairman Kevin McMullen said in a statement. The FRC numbers were underscored by a new survey released today by Country Financial of Bloomington, Ill., showing that 61% percent of parents said they are not letting the recession change their plans for their children’s college education. What’s more, 47% said college plans are a higher priority than retirement savings. The telephone survey of 1,241 Americans who expect to be responsible for paying for a child’s education was conducted by Rasmussen Reports LLC of Asbury Park, N.J., an independent research firm.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.