Share of high school students saving for college is rising

PITTSBURGH — About halfway through high school, Raymond Buehner and Halle Celebrezze came to terms with how expensive a college education would be and the fact that a large share of the financial responsibility would fall on their shoulders. Both began stashing away money from their part-time jobs.

"I've been saving a lot since I started this job," said Buehner, 18, who recently graduated from high school in Pittsburgh. He has been working 20 to 30 hours a week at a family farm called Soergel Orchards outside the city for the past two years. He plans to attend Slippery Rock University this fall and major in finance. "Working the cash register has helped me to be more accountable with money," he said.

While there is nothing new about high school students working and saving for college, researchers at the Washington, D.C.-based College Savings Foundation are seeing a spike in the number of young people going that route.

In its seventh annual report on college savings trends, the foundation found more high school students saving their own money for college this year than any previous year tracked. The survey found 60 percent of high school students are saving for college, up from 51 percent in 2015.

The surge comes at a time when previous generations of students have run up $1.3 trillion in college debt and many are finding their choices after graduation limited by all the bills. Those following in their footsteps have taken note.

"High school students have a heightened awareness of the high cost of a college education and its importance," said Mary Morris, chairman of the foundation and CEO of Virginia 529 in Richmond. "Families are talking more about all these things related to financing of college, which has led to more students taking responsibility."

Celebrezze, 18, will be attending the University of Pittsburgh, where she plans to major in psychology. She started working part-time between 15 and 20 hours a week at Soergel Orchards three years ago when she was in 10th grade.

"In my junior year, [the school] started talking really deep into college planning and how expensive it is, and I started putting my money into a savings account my parents started when I was born," Celebrezze said.

"I still have money to spend. I usually take $50 out of each paycheck every week."

According to the CSF survey, 78 percent of high school savers have put away at least $1,000 and 20 percent are saving primarily in 529 college savings plans because of the plans' tax advantages.

The College Savings Plans Network reported at the end of 2015, families had put aside $253.2 billion in 529 plans to cover college costs.

More parents also seem to be using sound strategies to boost savings.

While the current generation of high schoolers who plan to attend college are working and saving, many of them also realize they likely will need to tap other funding sources. The survey showed 91 percent will or may get financial aid.

Of the 71 percent of high school students who plan on borrowing, three-quarters are worried about paying back loans, and 45 percent expect to be paying back student debt for six to 10 years.

According to the College Board, the average cost of tuition and fees at a four-year public college for in-state students is $9,139 a year; for out-of-state students, the average cost is $22,958; and private four-year colleges cost $31,231 a year on average.