New research from Fidelity Investments and the Massachusetts Educational Financing Authority (MEFA) reveals more parents in Massachusetts than ever before are planning to cover the full cost of their children’s college education. The firm’s biennial College Savings Indicator study found 42% of parents plan to cover the full cost of their children’s college education, up from 31% in 2024. Even among parents who only plan to cover a portion of the cost, the amount they plan to cover is 53% on average, up from 48% in 2024. Those parents have lower expectations for how much they expect their children to cover – 42%, down from 47% in 2024.

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Massachusetts parents’ top savings priorities. Saving for a child’s education ranks first at 66%, followed by saving for retirement at 59% and saving for an emergency at 56%.

Massachusetts parents’ top savings priorities. Saving for a child’s education ranks first at 66%, followed by saving for retirement at 59% and saving for an emergency at 56%.

“Parents recognize the value of higher education and are making a real effort to save for it,” said Thomas Graf, Executive Director of MEFA. “While many families still have ground to cover to reach their savings goals, starting early is one of the most powerful steps they can take. Through the U.Fund and incentive programs like BabySteps and NextSteps, we’re helping families take that first step sooner, giving their savings more time to potentially grow and helping them prepare for future education costs with greater confidence.”

Massachusetts Parents Doubling Down on College Savings, but Still Have Ground to Cover

Even as the average cost of a four-year degree continues to climb1, nearly 8-in-10 parents (77%) agree the value of a college education is worth the cost. That confidence in the long-term value of higher education is translating into action, with more families actively setting aside funds for college. More than three quarters (77%) of parents have started saving for their children to go to college, up from 74% in 2024, and 39% have started saving in an account dedicated to college savings. Parents report saving around $14,000 a year toward their children’s college education on average. Among those who haven’t started saving yet, the top three barriers are having other more pressing priorities (76%), not being sure if their children will pursue higher education (38%), and not knowing how much to save (37%).

Despite setting lofty savings goals, many families in Massachusetts continue to face challenges in translating those amibitions into reality. Less than half (43%) of parents who plan to cover at least some of the cost of college and have started saving are on track to actually meet those goals. On average, parents hope to pay for 70% of their children’s education, and are on track to meet 58% of that goal. While they’re closer to their goal than in past years, many families will still need to find ways to make up for that shortfall. Fortunately, there are a variety of planning tools, savings programs, and educational resources available to help families bridge the remaining savings gap.

As the state administrator of the U.Fund 529 College Investing Plan, MEFA provides families with free college planning tools and resources at mefa.org. In addition to offering valuable federal and Massachusetts tax advantages, the U.Fund helps families start saving early through BabySteps, which provides eligible Massachusetts children with a $50 deposit when an account is opened within one year of birth or adoption. Families with children ages one to three who did not receive the BabySteps seed deposit may be eligible for the new NextSteps program, which offers a one-time $50 matching contribution to an eligible U.Fund account.

529 Owners Saving More Each Month

As more families look for tax-advantaged ways to save, 529 college savings account continue to emerge as an attractive option. Nearly half (44%) of Massachusetts families surveyed have set up a 529 account, up from 39% in 2024. Seventy-one percent of Massachusetts 529 owners report contributing regularly to their 529 accounts and save around $19,000 per year. By comparison, 67% of those who save, but do not use a structured plan, report saving regularly and have annual savings of around $8,000. Massachusetts parents saving in a 529 are also much more likely to have a financial plan in place to meet their college goals.

“The data consistently shows that families who choose to save in a dedicated college savings account are able to make more meaningful progress toward their goals,” said Amanda Verstegen, SVP, Head of Savings & Lending at Fidelity. “Establishing an account like a 529 early on can give families a powerful leg up that can help them turn their aspirations into reality.”

Student Debt Experience Driving Parents to Save More Aggressively

Parents in Massachusetts continue to worry about how student loan debt might impact their children’s future and many appear determined to help them avoid the financial tradeoffs they had to make themselves. Nearly 9-in-10 (88%) of parents say their own student debt is motivating them to help their kids save more for college. More than half of parents (55%) say paying off their loans delayed them from starting to save for retirement, and 49% say their loans hindered their ability to save for their children’s college education. Together, these findings suggest many parents are seeking to turn lessons learned from their own financial journeys into greater opportunities for the next generation.

Parents Weighing the Potential Impact of AI

Beyond financing concerns, parents are also considering how broader economic and technological trends might shape their children’s futures. Seventy-four percent of parents in Massachusetts believe artificial intelligence (AI) will influence which major their children choose for college. Nearly half (47%) think AI will make some jobs obsolete or more difficult to get, while 32% believe it will increase available job opportunities. Even amid uncertainty about how AI might shape future careers, most parents continue to view higher education as a worthwhile investment.

Need assistance with your college planning or help opening a U.Fund College Investing account? Fidelity and MEFA can help.

About the 2026 College Savings Indicator Study

Fidelity conducted a survey of parents with college-bound children of all ages. Parents provided data on their current and projected household asset levels including college savings, use of an investment advisor and general expectations and attitudes toward financing their children’s college education. Using Fidelity’s proprietary asset-liability modeling engine, the company was able to calculate future college savings levels per household against anticipated college costs. The results provided insight into the financial challenges parents face in saving for college. Data for the Indicator (number of children in household, time to matriculation, school type, current savings and expected future contributions) was collected by Big Village, an independent research firm, through an online survey from May 4-15, 2026, of 2,081 families nationwide with children aged 18 and younger who are expected to attend college. The survey respondents had household incomes of at least $30,000 a year or more and were the financial decision makers in their household. College costs were sourced from the College Board’s Trends in College Pricing 2025. Projected college savings available at the assumed college start date per household were computed by Fidelity Personal and Workplace Advisors LLC (FPWA), a registered investment adviser and a Fidelity Investments company. Within Fidelity’s asset-liability model, Monte Carlo simulations were used to project assets in the future at a 75 percent confidence level. The results of the College Savings Indicator may not be representative of all parents and students meeting the same criteria as those surveyed for the study.

About MEFA

MEFA is a state authority, not reliant on state or federal appropriations, established under Massachusetts General Laws, Chapter 15C. MEFA’s mission, since its founding in 1982, has been to help Massachusetts students and families access and afford higher education and reach financial goals through education programs, tax-advantaged savings plans, competitive loans, and expert guidance. All of MEFA’s work aligns with the ever-present goal to support the independence, growth, and success of Massachusetts students and families. Visit mefa.org to learn more.

About Fidelity Investments

Fidelity’s goal is to strengthen the financial well-being of our customers and deliver better outcomes for the clients and businesses we serve. Fidelity’s strength comes from the scale of our diversified, market-leading financial services businesses that serve individuals, families, employers, wealth management firms, and institutions. With assets under administration of $19.9 trillion, including managed assets of $7.8 trillion as of June 30, 2026, we focus on meeting the unique needs of a broad and growing customer base. Privately held for 80 years, Fidelity employs more than 80,000 associates across North America, Europe, and Asia-Pacific. For more information about Fidelity Investments, visit https://www.fidelity.com/about-fidelity/our-company.

The U.Fund® College Investing Plan is offered by MEFA and managed by Fidelity Investments. If you or the designated beneficiary is not a Massachusetts resident, you may want to consider, before investing, whether your state or the beneficiary’s home state offers its residents a plan with alternate state tax advantages or other state benefits such as financial aid, scholarship funds and protection from creditors.

Please carefully consider the plan’s investment objectives, risks, charges, and expenses before investing. For this and other information on any 529 college savings plan managed by Fidelity, contact Fidelity for a free Fact Kit, or view one online. Read it carefully before you invest or send money.

Units of the portfolios are municipal securities and may be subject to market volatility and fluctuation.

Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.

Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information.

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1 College Board’s Trends in College Pricing 2025

 

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