Dive Brief:

• More families are saving for college this year, and their average savings for college is higher, according to a report by Sallie Mae.
• College is the second-highest savings priority for families: 55% are saving for retirement, compared to 51% for higher education. But families allocate only 10% of their savings for college, compared to 53% for retirement.
• General savings accounts are the most popular vehicle for college savings, with 45% of families using them, followed by 29% using 529 College Savings Plans, 27% using a checking account, and 18% using a rewards program, such as Upromise.

Dive Insight:

Sallie Mae’s main takeaway from the “How America Saves for College 2014” report is that the economy is rebounding — that because parents are saving more for college in 2014, they’re more financially optimistic. Overall, 51% of families are saving for college in 2014, compared to 50% in 2013. That percentage had declined during the recession, from 62% in 2009. Average college savings is $15,346, compared to $11,781 in 2013.