This paper examines the contribution of parents' education and children's gender on parental expectations of their children's future education and the role of parental perceptions of their child's competencies in the formation of their expectations. A group of university and vocationally educated parents (N = 418) were asked to estimate the probability of their child entering gymnasium (high school) or vocational education and assess the child's competencies, first in preschool, and then at the end of the third school year. It was found that the education and gender-bound differences in the parental expectations were established before the child entered school, and by the end of the third school year the relationships between expectations and competence assessments strengthened and were more uniform among the parents. The findings suggested that the parental assessments of their child's abilities can be regarded as a potentially important social-psychological process through which social differences are transformed into the individualized interpretations of the child's educational prospects.