SOURCE: SimpliFi

August 03, 2011 09:00 ET

Survey Results Show Parents Aren't Saving for Children's College Education

Just in Time for Back-to-School, SimpliFi Reveals the Importance of Creating a Financial Plan

WINSTON-SALEM, NC--(Marketwire - Aug 3, 2011) - SimpliFi (www.gosimplifi.com) a free online financial planning and advice service that lets anyone plan for their financial future, today shared the results of their Back to School survey, revealing that 58 percent of parents don't have a college education fund established for their children. Among those polled, SimpliFi found that only 57 percent of preschooler parents are putting money toward a college fund.

"The average cost of college has skyrocketed in the past 30 years, so building up enough savings to pay for it has become more difficult. To ease the stress and financial burden, it's crucial that parents start saving for college very early -- even while their kids are still in diapers," said Bryan Link, CEO and co-founder of SimpliFi. "Less than 5% of Americans have a financial plan, but those with a plan are almost 3 times as likely to hit their goals. If parents start saving while their children are young they won't have to take out loans, or leave their children financially responsible to pay for school."

Other key results from the SimpliFi Back-to-School survey include:

  • Choice: 75 percent of parents who are saving for college feel they have a say in where their child goes to school.
  • Splitting the bill: 62 percent expect their children to share the responsibility of paying for their education.
  • Cash vs. Loans: 60 percent of parents say that they plan on paying for college in cash, while 13 percent are willing to take out loans, and only 10 percent are going to use financial aid.
  • Achievers: 8 percent are planning to pay for college through scholarships -- either academic or athletic.
  • As long as it takes: 22 percent are willing to pay for as many years of college as it takes for their child(ren) to graduate.

"Financial planning can be daunting. We help parents easily create -- and manage -- a comprehensive plan of attack for their financial lives. College is by far one of the most important investments you can make for your children -- saving even a little at a time, from a very young age, can greatly decrease the financial hardship that comes along with sending your kids off to school," added Link.

SimpliFi provides comprehensive advice and guidance on a range of financial topics, including long-term savings, debt management, insurance and investments. When a new user logs on, SimpliFi gathers information about where they are on their financial path, what their goals are, and where their financial trouble spots may be -- and then develops a series of steps for success. The site then analyzes debt, assets, insurance and other information, and builds out realistic action steps. Sophie, SimpliFi's virtual financial advisor, reminds users when goals are due and when it's time to update their plan. Once a user establishes a plan on SimpliFi it can be easily updated to reflect changes in circumstances.

For more information, please visit www.gosimplifi.com.

About SimpliFi
SimpliFi is a free online financial planning and advice service that lets anyone plan for their financial future. The company was founded in 2004 and is headquartered in Winston-Salem, NC. SimpliFi has been providing white label financial planning services to credit unions and banks since 2005. To start planning your financial future, or to find out more information about SimpliFi, visit www.gosimplifi.com.

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