Futuretrust(R) Hopes and Dreams 2008 Survey Uncovers 529 College Savings Plans Overlooked Yet Again; When Will the American Public Realize 529's are the Best Option When it Comes to Saving for College?

PHILADELPHIA, Sept. 19 /PRNewswire/ -- For the second year in a row, the Futuretrust(R) Hopes and Dreams 2008 Survey has revealed that nearly half of parents (48%)(1) still do not know what a 529 is -- an astounding finding considering the recent increase in attention paid to the extreme rising costs of college tuition. These intimidating costs plus the current economic climate leave no wonder that 52% of the nation's parents have not started saving for an amount that at this point seems impossible to tackle. Those concerns aside, the real problem is obvious: America's parents lack the knowledge of tax-advantaged 529's, how they work, and how effortless they are to utilize. More importantly, what can be done to increase 529 participation? Here is what the survey found:
-- 48% of parents don't know what a 529 college savings plan is. Interestingly enough, those who participate in 401(K) plans are more familiar with the idea - 63% of 401(K) participants knew what a 529 plan was. -- 57% of those who participate in a 401(K) have started saving for their child's educational costs. -- They are also more likely to participate in a 529 plan - 42% of those who participate in a retirement 401(K) are currently building college savings in a 529 plan. -- Only 44% of all parents have started saving for their child's education, and of those, only 29% currently have funds growing in a tax-advantaged 529 account. -- Only 21% of all parents will take advantage of a 529 account. An astonishing 54% plan on paying for college through the use of scholarships and grants - a frightening statistic considering fund availability is rapidly decreasing. -- 71% of employed parents said they would be at least somewhat likely to participate in a 529 savings program if it were offered as an employee benefit. "The first call to action when it comes to saving for college is to learn about the different savings vehicles that benefit families," says Rebecca Matthias, Founder and President of Futuretrust. "Unfortunately, parents and families are still relying heavily on loans, grants and scholarships, and will face a rude awakening when they realize that these funds are no longer available. Futuretrust is there to educate families about the benefits of a 529 program and how important it is to start saving as early as possible." About Futuretrust(R) Futuretrust is a MasterCard(R)-linked college savings program that enables families and friends to save for college through their everyday spending. Every time a purchase is made with the Futuretrust MasterCard, a minimum of 1% is automatically contributed to any tax-advantaged 529 college savings plan of the member's choice. Members also earn up to 10% in additional college savings when they use the Futuretrust MasterCard at thousands of partners in the Futuretrust Preferred Merchant Network consisting of major retail chains, catalogs, restaurants, and on-line merchants. Members can also earn college savings rebates when they buy, sell, finance, or refinance a home. Futuretrust is a no cost program. Membership is available online at http://www.futuretrust.com, by calling 1.888.trust68, or in store at any Motherhood(R) Maternity, Mimi Maternity(R), A Pea in the Pod(R) and Destination Maternity(R) location. Futuretrust is a Mothers Work, Inc. brand. About Harris Interactive(R) Harris Interactive is a global leader in custom market research. With a long and rich history in multimodal research that is powered by our science and technology, we assist clients in achieving business results. Harris Interactive serves clients globally through our North American, European and Asian offices and a network of independent market research firms. For more information, please visit http://www.harrisinteractive.com. About the Survey The Futuretrust "Hopes & Dreams" 2008 Survey was conducted online by Harris Interactive between June 12, 2008 and June 16, 2008 among 2,134 U.S. adults ages 18+, of whom, 644 are parents/legal guardians or expectant parents of a child or children who are likely to attend college in the future. This online survey is not based on a probability sample and therefore no estimates of theoretical sampling error can be calculated. To learn more, log onto http://www.futuretrust.com. (1) For the purposes of this survey, "parents" are defined as U.S. adults ages 18+ who are parents/legal guardians or expectant parents of a child or children who are likely to attend college in the future. Mothers Work press releases available through Company News On-Call at http://www.prnewswire.com/comp/581877.html.