Parents Not Saving Enough for College

March 20, 2002 ( - Despite the recent proliferation of new college savings plans coming on the market, a new survey found that more than half of American families with college-bound children aren't yet putting away college money.

The study for Morgan Stanley found that 54% of respondents with children headed for college haven’t started saving, while 67% with college-bound children confess to not saving enough.

Three quarters of respondents said they are unaware of 529 college-savings plans.

But not all respondents were behind schedule for college saving. The survey indicates that 70% of American families who have started a college savings fund did so before their child reached five. One in five started saving when their child was six to ten years old.

The survey involved 1,079 adults.