How much parents contribute on average towards college costs

[Beliavsky]

<p>Another paper
[Dynamic Aspects of Family Transfers
Kathleen McGarry
NBER Working Paper No. 18446
Issued in October 2012](<a href=“Dynamic Aspects of Family Transfers | NBER”>http://www.nber.org/digest/mar13/w18446.html&lt;/a&gt;)</p>

<p>looks at when and how much parents aid their adult children.

Kathleen McGarry examines data on 17 years of transfers between parents and their adult children and finds that parents evaluate their children’s income prospects before making gifts. When those prospects dim, especially after a reversal such as the loss of a job or a divorce, parents are willing to kick in money to ease the situation.

</p>

<p>When parents consider how much to help with college, I think they should also consider alternative ways they may help down the line.</p>