T. Rowe Price Introduces Age-Based College Savings Benchmarks for Families

T. Rowe Price Unveils Age-Based College Savings Benchmarks

In an effort to support families navigating the complexities of college savings, T. Rowe Price, a renowned firm in global investment management, has released a comprehensive report featuring innovative age-based benchmarks. The insights report, authored by Roger Young, CFP®, Thought Leadership Director at T. Rowe Price, emphasizes the necessity of strategic financial planning in the face of escalating college costs.

Understanding the Importance of Benchmarks

As tuition and fees continue to rise, establishing a clear savings roadmap is vital for parents aiming to fund their children's higher education. The new report outlines specific savings milestones correlated with the age of the child, providing parents with a measurable target. For instance, it suggests that by age ten, parents aiming to cover half the educational expenses should have saved at least 1.1 times the current annual tuition fees of their chosen institutions. Such guidelines equip families with a clearer path to achieve their educational financial goals.

Adapting Financial Strategies

The report doesn't stop at merely providing benchmarks; it also offers tailored advice on how families can adapt their saving strategies. Given the variability of financial circumstances and educational aspirations, parents are encouraged to modify their approaches as needed. Whether adjusting to changes in income or shifting educational ambitions, the report guides users on how to make their college savings plans more effective and sustainable over time.

The Role of 529 Plans

T. Rowe Price highlights the benefits of utilizing 529 college savings plans as a prominent tool in achieving educational funding goals. These plans not only offer tax advantages but also present various investment options that can significantly enhance the growth potential of the savings. The report advocates for the strategic use of 529 plans to optimize college savings, positioning them as a cornerstone for families aspiring to afford higher education expenses comfortably.

Roger Young emphasizes the importance of effective college savings, stating, "Saving for college is one of the biggest long-term savings goals for families. Our report equips families with savings benchmarks to measure their progress and stay on track." With over two decades of experience managing 529 plans, T. Rowe Price is well-versed in the financial strategies that can lead families toward making more informed decisions regarding their children's education.

Accessing the Full Report

For parents interested in exploring this valuable information further, the complete college savings report is accessible for download on the T. Rowe Price website. Additionally, Roger Young will be participating in a webinar hosted by Savingforcollege.com on May 29, 2025, at 1 PM ET, where he will address common inquiries related to 529 plans and college savings strategies.

About T. Rowe Price

Founded in 1937, T. Rowe Price (NASDAQ – GS TROW) has established itself as a robust entity in the realm of global asset management. Known for its commitment to investment excellence and retirement solutions, the firm manages assets totaling approximately $1.56 trillion, with a significant portion dedicated to supporting retirement planning. T. Rowe Price remains devoted to enhancing financial literacy and empowering families to secure brighter educational futures for their children.

For more insights and updates, visit T. Rowe Price on their social media platforms, including Facebook, Instagram, LinkedIn, and YouTube.