T. Rowe Price’s 2016 Parents, Kids & Money Survey

8TH ANNUAL PARENTS, KIDS &
MONEY SURVEY—COLLEGE
RELATED FINDINGS
T. Rowe Price
August 2016
Detailed Results

2
Contents
Saving for
kids’
education
Existing Student Loan Debt..................................................................................3
Saving for College…………………………………………………………………….7
Debt Threshold.……………………………………………………………………....17
Attitudes & Perceptions About Saving for College………………………………..22
Kids’ Responses……………………………………………………………………...27
Respondent Profile…………………………………………………………………..32
Objective and Methodology ………………………………………………………...37

4
16%
2%
9%
12%
14%
20%
23%
40%
48%
56%
0% 10% 20% 30% 40% 50% 60%
I don't have any debt
Other
Payday loan
Student loan (from kids' education)
Friend/relative debt
Student loan (from parents' education)
Medical debt
Car loan
Mortgage
Credit card debt
Types of Debt
T. Rowe Price 2016 Parents, Kids & Money Survey
N=1,086 (Total Respondents)
Q14. WHICH OF FOLLOWING TYPES OF DEBT DO YOU HAVE?
(CHECK ALL THAT APPLY)
 61% of parents have more than one type of debt, with a mean number of debt types at 2.25
 28% of parents have either type of student loan debt (for parents’ or kids’ education), and 5% have student loan
debt for both parents’ and kids’ education
 Parents with student loan debt (from parents’ education) are significantly more likely to have credit card debt
(67% vs. 54%) and payday loan debt (19% vs. 7%)
 Parents with student loan debt (from kid’s education) are significantly more likely to have credit card debt (75%
vs. 54%) and payday loan debt (38% vs. 5%)
 Parents with student loan debt (from parents’ education) are significantly more likely to say they lose sleep
worrying about college costs for their kids (49% vs. 40%)

5
27%
21%
29%
23%
0% 5% 10% 15% 20% 25% 30% 35% 40%
$30,000 or more
$15,000 to $29,999
$5,000 to $14,999
Less than $5,000
Amount of Debt—Student Loans (Parents)
N=611 (Have Student Loans for Parents’ Education)
Q15. WHAT IS THE APPROXIMATE BALANCE (I.E., THE AMOUNT YOU STILL
OWE) FOR YOUR STUDENT LOANS (FOR YOU OR SPOUSE’S EDUCATION)?
Mean: $27,078
Median: $12,500

6
32%
22%
18%
27%
0% 5% 10% 15% 20% 25% 30% 35% 40%
$10,000 or more
$5,000 to $9,999
$1,000 to $4,999
Less than $1,000
Amount of Debt— Student Loans (Kids)
N=134 (Have Student Loans for Kids’ Education)
Q15. WHAT IS THE APPROXIMATE BALANCE (I.E., THE AMOUNT YOU STILL
OWE) FOR YOUR STUDENT LOANS (FOR YOUR KIDS)?
Mean: $10,768
Median: $5,000

8
33%
67%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Saving for retirement
Saving for kids' college education
Family Saving Priority
Q16. WHICH OF THE FOLLOWING IS THE HIGHER PRIORITY FOR YOU AND YOUR
FAMILY?
Gender Age
Men Women Millennial Gen X Boomer
Saving for kids’ college education 70% 63% 77% 65% 57%
Saving for retirement 30% 37% 23% 35% 43%

9
5%
4%
1%
4%
5%
2%
3%
7%
1%
12%
1%
4%
2%
2%
11%
1%
3%
4%
28%
0% 5% 10% 15% 20% 25% 30%
Never
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
Age to Start—Saving for College
Q57. HOW OLD DO YOU THINK KIDS SHOULD BE WHEN YOU: START SAVING
FOR THEIR COLLEGE EDUCATION?
Mean: 6.73
Median: 5
5 or Younger: 47%
10 or Younger: 68%
Teenagers: 19%

10
17%
40%
51%
54%
58%
0% 10% 20% 30% 40% 50% 60% 70%
None of the above
Money saved for other goals
An emergency fund to cover unexpected expenses
Money saved for retirement
Money saved for kids’ college education
Savings Accounts
Q20. WHICH OF FOLLOWING DO YOU HAVE?
Total Types of Savings
None: 17%
One: 20%
Two: 25%
Three: 19%
Four: 19%
Gender Age
Men Women Millennial Gen X Boomer
Money saved for kids’ college education 69% 48% 70% 56% 55%

11
2%
1%
5%
12%
55%
24%
0% 10% 20% 30% 40% 50% 60%
I don't contribute
Every other year
Annually
Quarterly
Monthly
Weekly
Frequency of Contributions—College
N=633 (Have College Savings)
Q21. APPROXIMATELY HOW OFTEN DO YOU CONTRIBUTE TO YOUR KIDS’
COLLEGE EDUCATION SAVINGS?

12
College Savings Accounts
1%
3%
9%
11%
12%
13%
15%
20%
21%
22%
24%
37%
43%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Not sure
Other
Roth IRA
Annuity or other insurance product
Traditional IRA
UGMA or UTMA account
Individual securities or brokerage account
401(k) plan
Certificate of deposit (CD)
Checking account
Savings bond
529 account
Regular savings account
Q33. WHAT TYPES OF ACCOUNTS DO YOU USE FOR COLLEGE SAVINGS?
Total # of Accounts
One: 50%
Two: 20%
Three: 11%
Four +: 19%
Mean: 2.32
 Of those parents who have college savings, 37% use a 529, while 27% use a retirement
account (401(k) or IRA)
 Millennials are less likely than Gen Xers or Baby Boomers to use a 529 account for college
savings (22% vs. 42% vs. 42%)

13
College Savings Accounts for Each Kid
N=477 (Have College Savings and More than One Kid)
31%
69%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Same account
Separate accounts
Q34. DO YOU HAVE SEPARATE COLLEGE SAVINGS ACCOUNTS FOR EACH OF
YOUR KIDS OR DO YOU USE THE SAME ACCOUNT(S) FOR ALL YOUR KIDS?

14
Expectations About Paying for College
N=1,047 (Expect Kid(s) to Go to College)
12%
23%
65%
0% 10% 20% 30% 40% 50% 60% 70%
I will be able to pay the entire cost of college
I will be able to pay most of the cost of college
I will be able to pay some of the cost of college
Q35. WHICH OF THE FOLLOWING BEST DESCRIBES HOW YOU FEEL ABOUT
SAVING FOR YOUR KIDS’ COLLEGE EDUCATION?

15
Covering the Cost of College
N=927 (Expect Kid(s) to Go to College and Will Not Be Able to Cover the Entire Cost)
5%
3%
8%
11%
12%
12%
13%
15%
16%
26%
26%
35%
38%
51%
0% 10% 20% 30% 40% 50% 60%
I haven't thought about it
Other
Sale of real estate
Take money from retirement accounts
Home equity loan/second mortgage
Other family members
PLUS loan
Personal loan or line of credit
Credit cards
Student loan (parents to pay)
Through regular income
Student loan (kids to pay)
Kids will work
Grants/scholarships
Q36. HOW DO YOU THINK YOU WILL COVER THE REMAINING COST FOR
YOUR KIDS’ COLLEGE EDUCATION?
 A total of 50% of parents are relying on student loans to cover college expenses
 70% of those who plan to cover college costs using credit cards are already carrying a credit card balance
month-to-month
 21% of parents expect kids to work or take a loan, without bearing any of the remaining cost for college
themselves

16
Using Money From College Savings
Accounts
Q37. WHICH OF THE FOLLOWING THINGS HAVE YOU PAID FOR WITH
MONEY TAKEN FROM YOUR KIDS’ COLLEGE SAVINGS IN THE PAST TWO
YEARS? (CHECK ALL THAT APPLY)
8%
8%
10%
10%
10%
11%
12%
12%
12%
12%
12%
13%
13%
18%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
Down payment on a home
To cover expenses while unemployed
Wedding
Replenish emergency fund
Car purchase or repair
Holiday spending
Childcare/daycare
Day-to-day expenses
Home repair/renovation
Health care costs
Pay off debt
To pay taxes
Vacation
Kids' education
Have taken money from college savings
45%
55%
Yes
No
(N=282)
 3% of parents who have taken money out of college savings, have only done so to pay for their kids’ education
 Parents who have a 529 are significantly less likely to spend college savings on other things (38% vs. 49%)

18
Paying for College—Parent Debt Threshold
8%
11%
9%
13%
16%
17%
14%
11%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18%
More than $150,000
$100,000 to $150,000
$75,000 to $99,999
$50,000 to $74,999
$25,000 to $49,999
$10,000 to $24,999
Less than $10,000
None
Q38. HOW MUCH DEBT ARE YOU WILLING TO TAKE ON PERSONALLY TO
PROVIDE YOUR KIDS WITH A COLLEGE EDUCATION?
 Women are more likely than men to say never/less than $10,000 (21% vs. 7%), and less likely
to say $50,000 to $99,999 (15% vs. 30%) and $100,000 or more (14% vs. 24%)
 57% of parents are willing to take on $25,000 or more in debt to pay for the kids’ college
education, with 19% willing to borrow $100,000 or more

19
Paying for College—Kid Debt Threshold
6%
8%
7%
11%
15%
19%
16%
17%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
More than $150,000
$100,000 to $150,000
$75,000 to $99,999
$50,000 to $74,999
$25,000 to $49,999
$10,000 to $24,999
Less than $10,000
None
Q39. HOW MUCH DEBT ARE YOU WILLING TO LET YOUR KIDS TAKE ON TO
GET A COLLEGE EDUCATION?
 Women are more likely than men to say never/less than $10,000 (42% vs. 24%), and less likely
to say $50,000 to $99,999 (12% vs. 24%) and $100,000 or more (10% vs. 19%)
 Nearly half (47%) of parents are willing to let their kids borrow $25,000 or more, with 14% willing
to let their kids take on $100,000 or more in student loan debt

20
Debt Threshold by Current Student Loan
Debt for Parents’ Education
18%
22%
33%
27%
24%
22%
35%
19%
0% 10% 20% 30% 40%
$100,000 or more
$50,000 to $99,999
$10,000 to $49,999
Less than $10,000
Yes No
Q39. HOW MUCH DEBT ARE YOU WILLING TO LET YOUR
KIDS TAKE ON TO GET A COLLEGE EDUCATION?
Q38. HOW MUCH DEBT ARE YOU WILLING TO TAKE ON
TO PROVIDE YOUR KIDS WITH A COLLEGE EDUCATION?
13%
19%
33%
35%
22%
15%
36%
27%
0% 10% 20% 30% 40%
$100,000 or more
$50,000 to $99,999
$10,000 to $49,999
Less than $10,000
Have Parental Student Loans
= Statistically significant - .05 level
 Parents who currently have student loan debt (for their education or their spouse’s) are willing to
take on higher levels of debt to pay for their kids’ college education

21
Debt Threshold by Current Student Loan
Debt for Kids’ Education
16%
20%
36%
28%
38%
37%
21%
4%
0% 10% 20% 30% 40%
$100,000 or more
$50,000 to $99,999
$10,000 to $49,999
Less than $10,000
Yes No
Q39. HOW MUCH DEBT ARE YOU WILLING TO LET YOUR
KIDS TAKE ON TO GET A COLLEGE EDUCATION?
Q38. HOW MUCH DEBT ARE YOU WILLING TO TAKE ON
TO PROVIDE YOUR KIDS WITH A COLLEGE EDUCATION?
12%
16%
35%
37%
31%
37%
27%
6%
0% 10% 20% 30% 40%
$100,000 or more
$50,000 to $99,999
$10,000 to $49,999
Less than $10,000
Have Kid Student Loans
= Statistically significant - .05 level
 Parents who currently have student loan debt (for their kids’ education) are willing to take on
higher levels of debt to pay for their kids’ college education

ATTITUDES & PERCEPTIONS
ABOUT SAVING FOR COLLEGE

23
Attitudes About College
35%
40%
42%
50%
63%
68%
69%
71%
76%
81%
0% 20% 40% 60% 80% 100%
College isn’t worth the expense
I don’t use a 529 for college savings because then I won’t be eligible for financial
aid
I lose sleep worrying about college costs
If I pay for my kids’ college, I expect them to help me in retirement
I feel guilty that I won’t be able to pay more for their college
I’d be willing to get a second or part time job to pay for my kids’ college education
Because my kids will go to college before I retire, I feel like I should put money
towards that first and save for retirement after
I would consider sending my kids to a less expensive college to avoid taking on
student loans
I’d be willing to delay my retirement to pay for my kids’ college education
I think nearly all students graduate from college with student loans
Q41. HOW MUCH DO YOU AGREE OR DISAGREE WITH THE FOLLOWING STATEMENTS?
(DISPLAYING PERCENT THAT AGREE)
 42% of parents lose sleep worrying about college costs, which is up from 28% when the same
question was asked in 2014

24
Perception of College Cost
26%
23%
23%
28%
0% 5% 10% 15% 20% 25% 30%
$100,000 or more
$60,000 to $99,999
$40,000 to $59,999
Less than $40,000
Q40. WHAT DO YOU THINK IS THE TOTAL COST FOR A FOUR-YEAR
COLLEGE EDUCATION AT AN IN-STATE PUBLIC COLLEGE/UNIVERSITY?
 While The College Board reports that the average cost of a four-year in-state college education
is $80,000, only 35% of parents say $80,000 or more

25
Understanding of College Saving
21%
30%
38%
42%
45%
48%
53%
70%
0% 20% 40% 60% 80%
There are no penalties to withdraw money from a 529 college savings plan when it will
not be used for education
You cannot save for multiple children within the same 529 college savings plan
Stocks are generally less risky investments than bonds
I lose any money left in a 529 college savings plan if my child doesn’t go to college or if
there’s money left over when they finish
A 50-year-old shouldn’t put any of their retirement money in stocks because stocks can
lose money
Having an emergency fund to cover one or two months living expenses is sufficient
If I save 6% of my income towards retirement each year, I’ll have enough money to
comfortably retire at age 65
What investments you choose (e.g., what stock, bond, or mutual fund) matters more than
how much money you invest
Q62. PLEASE INDICATE WHETHER EACH OF THE FOLLOWING STATEMENTS IS
TRUE OR FALSE
PERCENT OF PARENTS WHO INCORRECTLY BELIEVE:

26
Understanding of College Saving
43%
57%
0% 10% 20% 30% 40% 50% 60%
False
True
Q62. PLEASE INDICATE WHETHER EACH OF THE FOLLOWING STATEMENTS IS
TRUE OR FALSE: CONTRIBUTING TO A 529 COLLEGE SAVINGS PLAN WILL
DEFINITELY IMPACT YOUR ABILITY TO GET FINANCIAL AID FOR COLLEGE
LATER

28
24%
9%
67%
0% 10% 20% 30% 40% 50% 60% 70% 80%
I don't know
No
Yes
Knowledge of Parental College Savings
Q83. DO YOUR PARENTS SAVE MONEY SO YOU CAN GO TO COLLEGE?
 Of the 67% of kids who think their parents are saving for college, 77% have parents who
indicated they are saving, while 23% of kids have parents who indicated that they are not saving
for college

29
11%
4%
85%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Not sure
No
Yes
Kids’ College Expectations
Q84. DO YOU THINK YOU WILL GO TO COLLEGE?

30
Kid Agree Statements
41%
43%
57%
62%
78%
0% 20% 40% 60% 80% 100%
I’ve lied to my parents about what I’ve spent money on
I sometimes feel ashamed that I have less than most of the other kids
I expect my parents to buy me what I want
I expect my parents to cover the cost for whatever college I want to go to
I would consider going to a less expensive college to avoid taking on student loans
Q89. HOW MUCH DO YOU AGREE OR DISAGREE WITH THE FOLLOWING
STATEMENTS?
(DISPLAYING PERCENT THAT AGREE)
 61% of kids whose parents say they will not be able to cover the entire cost of college say
that they expect their parents to cover the cost for whatever college they want to attend

31
Knowledge-Based Kids Questions
80%
85%
0% 20% 40% 60% 80% 100%
My parents should save for college in a savings account
It costs more to go to college than it does to buy a car
Q95. PLEASE INDICATE WHETHER EACH OF THE FOLLOWING STATEMENTS
IS TRUE OR FALSE.
(DISPLAYING PERCENT SAYING TRUE)

33
49%51%
Respondent Profile
26%
25%
25%
24%
South
Northeast
West
Midwest
Q2. REGIONQ1. AGE Q3. GENDER
Men
Women
Q5. HHI
76%
11%
9%
4%
1%
Married
Separated/divorced
Single
Married (same sex)
Widow/Widower
Q4. MARITAL STATUS
29%
58%
13%
< 35
35–50
51 +
30%
38%
32%
< $50K
$50K–$99,999
$100K +
74%
16%
9%
5%
2%
White/Caucasian
Hispanic/Latino
Black/African
American
Asian
Native American
Q6. RACE/ETHNICITY
N=1,086 (Parents: Total respondents)

34
Respondent Profile
Q7. EDUCATION LEVEL
64%
14%
9%
4%
4%
3%
2%
Employed full-time
Stay at home parent
Employed part-time
Self-employed
Unemployed
Retired
Student
Q8. EMPLOYMENT STATUS
2%
11%
21%
12%
33%
21%
< HS graduate
HS graduate
Some college
Assoc. degree
Bachelor's degree
Graduate degree
28%
42%
19%
11%
One
Two
Three
Four +
Q9. # KIDS IN HH
51%49%
Q11. KID GENDER
BoysGirls
Q12. KID AGE
10%
14%
16%
13%
14%
19%
14%
8
9
10
11
12
13
14
T. Rowe Price Parents, Kids & Money Survey
N=1,086 (Parents: Total respondents); N=1,086 (Kids: Total respondents)
80%
15%
5%
Biological
only
Non-
biolgical
only
Mix
TYPE OF KIDS

35
Respondent Profile
25%
53%
17%
4%
1%
None
One
Two
Three
Four +
# BOYS IN HOUSEHOLD# KIDS IN HOUSEHOLD
KID GENDER MIX
28%
42%
19%
11%
One
Two
Three
Four +
21%
25%
54%
Girls only
Boys only
Boys and girls
# GIRLS IN HOUSEHOLD
22%
51%
21%
5%
2%
None
One
Two
Three
Four +

36
Respondent Profile
75%
22%
3%
None
One
Two +
# KIDS 8-14 IN HH# KIDS < 8 IN HH
KID AGE MIX
25%
53%
42%
19%
11%
None
One
Two
Three
Four +
29%
52%
3%
16%
8-14 only
8-14 and younger
8-14 and older
8-14 and both
# KIDS > 14 IN HH
63%
30%
6%
1%
One
Two
Three
Four +

38
Objective and Methodology
Objective
 To understand the basic financial knowledge, attitudes, and behaviors of both parents of
children ages 8-14 and their children ages 8-14.
Methodology
 T. Rowe Price commissioned an online survey of parents of children ages 8-14 and their
children ages 8-14.
 The survey was fielded from 2/4/16 to 2/11/16, with parent quotas of approximately 50%
men and 50% women.
 A total of 1,086 parents and children ages 8-14 in the U.S. participated; the sampling error
for a sample of 1,086 is +/- 3% at the 95% confidence interval.
 The survey was fielded through MetrixLab, Inc.

T. Rowe Price’s 2016 Parents, Kids & Money Survey

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