Parental income of college freshmen in 2005 was 60% above the national average, according to a study by UCLA’s Cooperative Institutional Research Program released on April 2, 2007. The longitudinal study has surveyed incoming college freshmen since 1966. In 1975, the income of families of college freshmen was 46% above the national average.
Some are concerned that this is further evidence of the growing gap between the “haves” and the “have-nots” in America. To be sure, recent evidence points to the fact that the children of college-educated parents are more likely to go to college than the children of non-college-educated parents. Further, there’s overwhelming evidence that having a college education leads to higher incomes. This is a predictable cycle and probably the intended outcome of higher education to begin with—more education leads to higher incomes and better educated parents both prioritize education and are able to provide the funds to support that priority for their children.
The best colleges in the nation could easily fill their classes with these better educated, more affluent high school students across America and there’d still be plenty of superstar students left over. However, education policy makers continue to push for economic diversity on campus, leading to even tighter standards for top students from top school districts.
The study found further evidence that money is important on college campuses. According to the latest crop of freshmen, one of the key reasons for attending college is to make money (69%). In 1976, making money was an “essential” or “very important” reason for attending college for 49.9% of college freshmen. These days, the only “object” more important to college freshmen than “being well off financially” is “raising a family” which was important to 76% of survey respondents. Both “raising a family” and “making money” has never been more important in the history of the study than they are today. “Being well off financially” has increased in importance the most during the life of the study from a low of 36% in 1971 to 73% in 2005.
In the study, the other important “objects” were: “helping others who are in difficulty” (67%); “being well off financially”; “developing a meaningful philosophy of life” (46% and the one in steepest decline over the past 40 years), and “becoming a community leader,” at 35%.
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My clients’ 529 plans are just as likely to be designed to help their grandchildren pay for college as for their own children. Do you have any data on how easy or difficult it is for kids (or their parents) to pay for college these days?
You write:
“Do you have any data on how easy or difficult it is for kids (or their parents) to pay for collegeâ€
Yes, in fact the study had another striking statistic that suggests another gap: Students these days have fewer concerns about financing their education (11.6%) than they did just a decade ago (19.1% in 1995).
Going to college is a foregone conclusion in my community. My clients are mostly college-educated and often hold advanced degrees and it is the rare situation where the kids aren’t headed for advanced degrees themselves. Does anyone remember when college was a “nice-to-have�
You mention that even “superstar†students are having trouble getting into good colleges these days if they come from top school districts. Is anyone getting asked by their top clients to help with education strategy? I have linked up with a college admissions coach and it’s been a very valuable marketing strategy.
You write:
“I have linked up with a college admissions coach and it’s been a very valuable marketing strategy.â€
Well done. That is first-class “problem-solvingâ€â€”focus on your top clients’ concerns, not what you sell. If you keep doing that for your high net worth clients, there will be plenty of opportunities to monetize the relationship over the years.
There was a report released, I think, today and the affordability of college is not what it used to be. Also, there are fewer going to college than the last generation. I know as Emil mentioned, in my neighborhood I would expect most to go on to college. I know for my own kids it is expected that they will (but not forced if they choose another path.)