Saving for College: A Practical Perspective

As both a mom and a wealth advisor, I understand how challenging it can be to balance family priorities with planning for the future, especially when it comes to saving for your child’s college education. We all want the best for our kids, and that includes giving them the opportunities a great education provides. 

College is so pricey these days that it really pays to start saving early. At four-year public universities, over 40% of tuition is paid directly by parents, which highlights just how important it is to start saving early and be strategic about your approach.¹ 

If you somehow knew exactly who your newborn would become—what their interests would be, whether they’d get a scholarship, go in-state or out-of-state, attend a trade school, or pursue a traditional four-year degree—then figuring out how much to save would be simple. But in most cases, the “right amount” is an educated guess at best.

Here are a few important considerations to keep in mind as your teen prepares for college or explores their options:

1. What will the cost gap be—and who’s covering it?

Will your savings and any scholarship money be enough to cover tuition, room, and board? If not, how will the gap be filled? Will parents or grandparents step in? Will the student need to take out loans, get a job, or consider more affordable options like community college for the first two years? Having this conversation early helps avoid panic later.

2. Don’t ignore the cost-benefit analysis.

When looking at schools and majors, it’s critical to evaluate cost versus potential return. Is the degree your student is pursuing likely to lead to a job and income after graduation? I’m not discouraging anyone from a liberal arts education, but it’s worth pointing out that the career path is generally clearer with a nursing or accounting degree than with a degree in art history, women’s studies, or psychology.

If the answer to “what next?” is “more school,” make sure your student understands the financial and time investment that a graduate degree requires—and what job opportunities are realistically available on the other side of it.

3. Don’t count on forgiveness.

Expecting the government to foot the bill is not a sound plan. Yes, some people have had their student loans forgiven. But many more have not—and those loans often become a millstone that weighs people down as they try to launch their careers, buy homes, get married, or start families.

4. Consider alternatives like trade schools or apprenticeships.

College isn’t the only path to a stable, well-paying career. Trade schools and apprenticeship programs can lead to high-demand, high-skill jobs with far less debt. Electricians, plumbers, welders, HVAC techs are examples of roles that are essential, often pay very well, and offer faster paths to the workforce than a traditional degree.

5. Don’t let emotion drive the decision.

College choices are often emotional—especially for parents who want the best for their kids. But letting emotion override logic can lead to overspending on a brand name school or majoring in something with little financial payoff. Help your student think critically, not just about what they love now, but how they want to live later.

Practical Steps for Parents: Turning Plans into Action

All of this advice is most helpful when paired with proactive financial habits. Here are some practical steps you can take, starting today:

• Start saving early. The earlier you start, the more time compound growth has to work its magic—even small, consistent contributions can grow significantly over 15+ years.
• Use a 529 plan. These tax-advantaged savings accounts are specifically designed for education expenses. The funds grow tax-free, and qualified withdrawals like tuition, books, and even room and board are also tax-free.
• Know your state’s tax benefits. Many states offer state income tax deductions or credits for contributions to their 529 plans. That’s immediate savings today in addition to long-term growth.
• Invest for growth. A 529 shouldn’t just be a glorified savings account. Choose age-based or diversified investment options that align with your timeline and risk tolerance.
• Coordinate with family. Grandparents or other family members can contribute to 529s or other education savings tools—sometimes even in ways that offer them tax benefits too.

Final Thoughts + A Call to Action

Saving for college is about more than just setting money aside. It’s about building a strategy that supports your family’s financial health and your student’s future success. It’s also about being realistic, asking the hard questions, and treating education like the investment it is.

This is a great topic to speak with a financial planner about. If you haven’t started planning yet, or if you’re not sure your current strategy aligns with your goals, it’s never too late to get clarity. Whether you need help choosing the right savings vehicle, running cost projections, or weighing degree paths against long-term financial outcomes, a financial planner can help you create a plan that fits your family’s unique needs.