Parents are saving more than ever for college — and it's still not enough

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Countries with cheap college tuition for American students

College tuition continues to rise, putting increasing pressure on parents hoping to give their children a hand in paying for school. And more parents than ever are stepping up.

According to Fidelity's recently released 10-Year College Progress Report, 72% of parents reported saving for college this year —a record high — compared to 58% in 2007. The number of parents taking advantage of a dedicated college savings plan, such as a 529 plan, is also on the rise, up 62% since 2007.

However, it's still not enough.

SEE ALSO: Nearly 75% of Americans are missing out on an easy way to save for college — here's what every parent should know ​​​​​

"While families have adopted more active and effective savings habits over the past decade, this year's study still finds that on average, parents are on track to reach just 29% of their college funding goal by the time their child heads to campus," Keith Bernhardt, vice president of college planning at Fidelity, noted in the study.

Fidelity found that on average parents aim to cover 70% of their kids' college costs, a spike from the 57% reported in 2012. But while noble, these bigger goals mean parents need to ramp up their savings efforts significantly — often easier said than done.

RELATED: Countries where college tuition is free or almost free

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6 countries where tuition is completely (or essentially) free for Americans
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6 countries where tuition is completely (or essentially) free for Americans

Germany

Cost: Free tuition, but depending on the university room and board might not be included

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Brazil

Cost: Free tuition for public universities (with an $18 registration fee and cost of room and board); Private universities cost $2K per year on average

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Scandinavia 

Cost: Free tuition for all universities 

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Slovenia

Cost: $50 registration fee

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France

Cost: $200 for public universities

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Mexico 

Cost: About $530 for public universities; about $11,280 for private universities 

Photo credit: Getty

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On average, families have increased their savings from $1,500 per year in 2007 to $3,000 in 2016, but nearly half admit they still feel off-course to reach their target amount. Parents with kids in tenth grade or higher also admitted they wish they had saved more early on to give their investment time to grow.

They're on to something. Putting away just $50 a month from the time a child is an infant until they're 18 adds up to a lump sum of $10,800. And investing that money into an account with a 6% rate of return nearly doubles it, leaving parents with around $19,000 after 18 years.

Overall, parents are making substantial progress when it comes to saving for college. But if they want to hit that 70% goal by the time their child packs up for freshman year, they need to double down on their efforts.

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