Sending a child off to college is an exciting milestone, but it can also bring a major shift in your family’s finances. And while tuition is often the first expense parents think about, it is only one piece of the puzzle.
Before the first tuition bill arrives, take a practical look at the full cost of college—and how it fits into your family’s bigger financial picture.
Look Beyond Tuition
College costs can vary significantly depending on the school and where your child lives. According to the College Board’s 2025–26 data, average published tuition and fees range from about $4,150 for public two-year colleges to $45,000 for private nonprofit four-year institutions.
But tuition isn’t the only expense. Families also need to plan for:
- Housing and meal plans
- Books and course materials
- Technology and supplies
- Transportation and trips home
- Health insurance and medical expenses
- Personal spending and entertainment
- Parking or vehicle costs
Before your child starts school, create a realistic annual budget that accounts for both the expenses paid directly to the college and the costs your family will handle separately.
Understand Your Financial Aid Package
Financial aid can significantly reduce the cost of college, but it is important to understand exactly what you are being offered.
When reviewing an aid package, look at the difference between scholarships and grants and loans that must eventually be repaid. Also check whether scholarships are renewable and whether your student must meet certain academic requirements to keep them.
The FAFSA® is an important starting point for determining eligibility for federal student aid, but families should also explore scholarships and other resources that may be available.
The goal is to understand the net cost of college—not just the school’s published price.
Don’t Put Your Retirement at Risk
One of the biggest financial planning mistakes parents can make is putting their own retirement goals on hold to pay for college.
Before withdrawing from investments, reducing retirement contributions, or taking on significant debt, consider how those decisions could affect your long-term financial plan.
Parents considering borrowing should also carefully evaluate the repayment terms and long-term cost of student or Parent PLUS Loans.
Remember: There are many ways to pay for college, but there are far fewer ways to pay for retirement.
Your goal should be to help your child pursue their education while also protecting your own financial future.
Review Your College Savings
If you’ve been saving through a 529 plan or another account, now is the time to review your strategy.
Consider how much you’ve saved, how much you expect to need each year, and how you’ll cover any remaining costs. You should also understand how scholarships and other forms of financial aid could affect your college savings strategy.
It may also be worthwhile to talk with your financial or tax professional about how to coordinate education savings with available tax benefits.
Prepare for the Expenses You May Not Expect
Some of the biggest financial surprises aren’t found on the tuition bill.
Your child may need money for a laptop, travel home, a car repair, medical expenses, or an unexpected move off campus. You may also find yourself spending more on travel to visit them or helping with expenses you didn’t anticipate.
Before the semester begins, talk with your child about who will pay for what. Establishing expectations around spending money, credit cards, and other expenses can help prevent financial surprises for everyone.
College is also an opportunity to teach your child valuable money skills they’ll carry into adulthood.
A Quick College Financial Checklist
Before your child heads to campus, ask yourself:
- Do we know the full annual cost—not just tuition?
- Have we reviewed the financial aid package carefully?
- How much will we pay from savings or current income?
- Will we need to borrow, and if so, how much?
- Are we staying on track for our own retirement?
- Have we planned for unexpected expenses?
- Have we discussed financial expectations with our child?
The Bottom Line
Paying for college is about more than writing a tuition check. It requires balancing education costs with your family’s cash flow, savings, debt, taxes, and long-term financial goals.
If your child is preparing for college, now is a good time to sit down with your financial advisor and look at the bigger picture. A thoughtful plan can help you make the most of your resources while keeping your family’s financial future on track.
College may last four years, but the financial decisions you make today can impact your family for decades to come.
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