When it comes to college planning for their children, women drive the planning process, but many take a back seat on finances, OppenheimerFunds found in a nationwide survey of 1,658 parents.
Women are more committed than men to the value of a college degree, with 74% saying that its very important for their children to obtain a college degree, compared with only 66% of men who said so. Asked whether college would be helpful to their daughters to achieve financial security, 52% of the women said yes, whereas only 30% of the men thought so.
Nonetheless, only 10% of women said they have a financial plan in place to help save for their child’s college education.
“The implications are clear: To the extent that women don’t manage the college saving process well, their retirement could take a hit,” said Donna Winn, president and CEO of OppenheimerFunds Private Investments. “It might be because they’re paying college costs out of their own retirement funds, or subsidizing a child who ‘failed to launch’ because of heavy college debt or lack of funds to finish school.
“For the sake of their kids with strong college dreams, as well as their own financial security, women need to match their fervent devotion to the cause of college with much more attention to the financial side of the equation,” Winn said.
OppenheimerFunds has an education website, collegewithinreach.com, to help parents financially plan for college.