The most recent national survey of American households with high school students shows a clear pattern: families are taking college preparation seriously and putting money aside earlier than in the past. Based on online interviews with 1,005 high school students ages 14–18 and 1,005 parents, this first update since 2026 reveals that 95% of students expect to continue their education after graduation and 82% of families believe that a degree or credential will be worth the cost. At the same time, persistent misunderstandings about aid and borrowing suggest planning is often incomplete.
Households report larger college balances and more active planning. The average amount set aside for higher education rose to $42,307 — an increase of 61% from the $26,266 reported in 2026 — and roughly 6 in 10 families with college-bound students now have dedicated savings. Yet much of that cash sits in taxable accounts. Typical choices and gaps in awareness will shape both budgets and decisions families make in the years ahead.
Table of Contents:
Saving behavior and financial preparation
More families today report an explicit approach to college costs: 64% say they have a strategy to pay for higher education, up from 54% in 2026, and 77% of parents of high school seniors say they have a plan. Students are part of the conversation more often, with 78% of teens saying they participate in financing discussions. The most common vehicle remains general savings accounts (53%), while 39% of households use a 529 plan — a tax-advantaged option that can offer tax-free growth and qualified tax-free withdrawals for education expenses. Income concentration explains much of the increase in average balances, as higher-earning families drove the biggest gains.
Where families fall short
Despite stronger saving habits, knowledge gaps are substantial and consequential. Nearly half of families (48%) believe scholarships are awarded only for top grades, overlooking merit categories tied to need, talent, major, or community involvement. Only 37% understand that most students pay less than the sticker price after grants and institutional aid are applied. Misunderstanding about loan mechanics is also widespread: just 22% correctly identify when interest typically begins to accrue on many loans — at disbursement (when funds are sent to the school) rather than at graduation.
Impact on borrowing and budgeting
Even with higher savings, families still expect to borrow: 46% anticipate taking on debt for college, a modest decline from 54% in 2026. Many are willing to stretch finances to access preferred institutions — 83% would extend their budget for better opportunities, and 73% would borrow rather than have the student skip college. Parental attitudes toward limits are mixed: 68% favor caps on student borrowing, while only 10% oppose such limits. The choice of account matters: funds in a 529 can save thousands by avoiding taxes that apply to ordinary savings and by preserving eligibility for need-based aid calculations.
AI, career choices and practical next steps
The survey included new questions about artificial intelligence. A majority of parents and teens (79%) view AI skills as essential for many future roles, and 69% think the technology will create new career pathways. Still, concerns persist: 46% worry AI could complicate workforce entry, 37% report parents advising a career rethink because of AI developments, and about 28% of students say they already changed their goals. Despite those worries, only 5% of families decided against college because of AI.
Practical actions families can take
To turn planning into better outcomes, families should adopt a few straightforward habits. Start a written college payment plan by the student’s sophomore year to set savings targets and expectations. Consider contributing to a 529 plan when appropriate to capture tax advantages and preserve flexibility for qualified expenses. File the FAFSA annually — it unlocks federal grants, loans, work-study, and often institutional and state aid. Research likely starting salaries and placement metrics before choosing majors or schools using free resources like the College Scorecard and the Occupational Outlook Handbook. Finally, learn when interest begins to accrue on loans: for most unsubsidized federal and private loans, interest starts when funds are disbursed, not when a student graduates.
In short, American families are saving more and involving students earlier in financing conversations, but awareness of critical details remains uneven. Bridging those gaps — especially around scholarship eligibility, the true net price of college, and loan terms — will help households convert rising savings into smarter choices and less stressful borrowing.