Parents are balancing numerous financial priorities, as both near-term considerations and the distant future compete for their spending. According to a recent research study from Ameriprise Financial, “Parents & Finances,” parents’ top financial goals are: saving for retirement (59%), paying for their children’s education (39%) and managing day-to-day living expenses (36%).

Parents responding to the survey reported finding joy in parenthood and striving to give their children the best in life; however, they are concerned the trade-off decisions they make today will impact their financial future.

Turning Financial Goals into Action

Working with a financial adviser can help parents feel empowered and in control financially, Ameriprise said, so that they can spend more time focused on their children.

According to Ameriprise data, parents recognize the important role a financial adviser plays: 74% of respondents said it is important to seek professional advice when planning for their children’s future, while 88% said their adviser was helpful in making financial decisions related to their children.

Among parents who used an adviser, the most discussed topics were saving for children’s education (60%), passing down financial values (52%) and achieving family goals (51%).

More than half (56%) of parents have introduced their children to their adviser.

Parents Focus on College Costs Early

The research study indicated that that most parents (89%) plan to contribute financially to their child’s college education—a commitment that often begins early. Nearly half (49%) reported they started saving before their child turns or turned 5, and a dedicated 9% reported beginning even before their child was born.

This proactive planning comes in response to the steep and rising cost of higher education. According to the Education Initiative, the average annual cost of college in the United States is $38,270 per student, which includes tuition, books, supplies and living expenses. When factoring in the potential interest on student loans and the loss of income due to time spent studying instead of working, the total investment in a bachelor’s degree can exceed $500,000 over a lifetime.

Raising Financially Savvy Children

The majority (72%) of report respondents said they take on the responsibility for teaching their children about money. The leading ways parents encourage their children to make smart financial decisions include: opening a savings account for them (76%); encouraging them to save for a short-term goal (68%); and stopping them from spending money unwisely (61%).

Most parents (88%) said they give their children an opportunity to practice financial lessons by paying them for actions and achievements, such as good grades, chores, and being kind and helpful.

The study, fielded in January 2025, surveyed more than 3,000 American parents at least 25 years of age with at least one child younger than 30 years old.