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Parents Deep Sixing 529

wall-streetThe economy didn’t just hurt 529 plans financially.

After years of big jumps in usership of the state-sponsored piggy banks for higher education, the Wall Street Journal is reporting a drop in the number of parents investing in 529 plans for their kids these days.

So are parents not saving for their kids’ educations? Yes and no.

Some parents are simply wary about the market and have opted to invest on their own, following avenues they hope carry lower risk (and possibly a decent yield). Still others are scrimping on everything – and they’d prefer to keep the money close to home, lest they need it in a pinch.

Which makes them smarter than the average bear if you look at most financial gurus’ advice – save your money for your retirement, they warn. Let the young and able-bodied pay for college and work it off. Easier said then done – it was one of the hottest topics right here on Babble when mom Meagan Francis broached the subject of NOT paying for her kids college back in July.

Still, in light of the economy – when the choice comes down to putting money in an iffy 529 or putting food on the table, I don’t think the decision is all that hard.

Image: epicharmus via flickr

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