Parental Saving and College Outcomes for Children: Investigating Institutional Selectivity and Financial Stress

• In Event: Poster Session 1
  In Poster Session: Exploring Issues and Research in Higher Education Finance and Policy

Abstract

When parents save to pay for their child’s college education, they may do so expecting beneficial results to accrue. This study investigates the relationship between parental college financial planning and the selectivity of college attended by their child as well as their child’s subsequent financial stress. Logistic regression techniques are used with a nationally representative cohort of 10th graders from the Education Longitudinal Study (ELS:2002-2012). Results indicate early parental financial planning action is related to a child’s attending a highly selective college as well as a child’s later financial stress, and saving more is associated with favorable outcomes.

Authors

• Catherine A. Manly, University of Massachusetts - Amherst

• Ryan S. Wells, University of Massachusetts - Amherst