Presented by Axial Financial Group.
September brings new routines, fresh school supplies, and another reminder of how quickly children grow. Whether your child is starting kindergarten or heading into senior year, the beginning of the school year is a good opportunity to revisit your college planning strategy.
You don’t need to have every future tuition payment figured out today. A few thoughtful steps can help you understand your options, make progress, and keep education expenses connected to your family’s broader financial goals.
1. Start With What You Can Comfortably Save
College costs can feel overwhelming, especially when you’re also managing a mortgage, everyday expenses, and retirement contributions. Instead of letting a large future number discourage you, start with an amount that fits your budget.
Setting up automatic monthly contributions can help make saving a consistent habit. As your income or expenses change, revisit that amount and consider whether you can increase it.
If you already have education savings, September is a natural time to check your progress. How much have you saved? Has your contribution amount changed? Does your goal still reflect what you hope to provide?
You may want to cover the full cost of college, contribute a specific dollar amount, or help with certain expenses. Defining that goal gives your savings plan a clearer direction.
2. Review Your College Savings Options
A 529 education savings plan is one option families may consider. These accounts offer tax advantages: earnings grow free of federal income tax, and withdrawals are generally federally tax-free when used for qualified education expenses. Contributions are not deductible on your federal income tax return.
Before choosing a plan, compare its fees, investment options, and any available state tax benefits. Investment-based 529 accounts can lose value, so your investment approach should reflect when you expect to need the money.
For a younger child, you may have more time to navigate market fluctuations. As college approaches, review whether the investments remain appropriate for expenses that are only a few years—or months—away.
3. Look Beyond the Tuition Number
Tuition is only one part of the college budget. Housing, meals, books, transportation, technology, and personal expenses can all affect what your family will need to contribute.
At the same time, a school’s published price may differ from what your family ultimately pays. A college’s net price calculator can help estimate costs after grants and scholarships, providing a starting point for comparing schools. Treat the result as an estimate rather than a financial aid offer.
For families with high school students, begin building a realistic range of options. Include schools that fit academically, socially, and financially, and consider how costs may add up over the full degree program.
4. Put Financial Aid and Scholarships on Your Radar
As applications approach, create a calendar for financial aid requirements, scholarship applications, and college deadlines.
Check the official FAFSA website for the opening date and requirements for your student’s intended enrollment year. Review each school’s financial aid instructions as well, including whether additional forms are required.
When comparing aid offers, pay attention to what each component means. Grants and scholarships generally do not need to be repaid, while loans represent borrowing. Check whether scholarships are renewable and what your student must do to maintain them.
Understanding these details can help your family compare the amount you will pay and borrow each year.
5. Have an Honest Conversation About the Family Budget
Talking about college costs early gives your child time to understand the choices ahead.
Discuss what your family expects to contribute, whether your student will help through savings or work, and how borrowing could affect life after graduation. If loans may be part of the plan, explore potential monthly payments alongside realistic starting salaries.
These conversations can also make room for different paths, including community college followed by a transfer, commuting, or an eligible vocational program.
The goal is to help your child make an informed decision with a clear understanding of the financial commitment.
6. Keep Your Own Financial Future in the Plan
Helping a child pay for college is meaningful, but it needs to fit alongside emergency savings, debt management, and retirement planning.
Before increasing education contributions or committing to parent loans, consider how the decision could affect your household’s future flexibility. Be especially thoughtful about using retirement assets, which may create taxes and reduce the money available for your later years.
A sustainable college funding strategy should support your child while preserving your ability to meet other essential goals.
Make College Planning Part of Your September Routine
You don’t need to solve everything this month. Start by reviewing your savings, choosing one next step, and setting aside time for a family conversation.
We help families connect education planning with the rest of their financial lives. Whether college is years away or applications are already underway, we can help you evaluate your options and build a plan that reflects your priorities.
This material is for informational purposes only and is not individualized investment or tax advice. Before investing in a 529 plan, consider its investment objectives, risks, charges, expenses, and any benefits available through your home state’s plan. Consult your financial advisor and tax professional regarding your circumstances.
Axial Financial Group. All Rights reserved. 1 Van de Graaff Drive, Suite 500, Burlington, Massachusetts. 781.273.1400
This material is intended for general informational purposes only and should not be considered individualized investment, tax, or legal advice. Before making any tax-related decisions, consult with your financial advisor and tax professional. This article was developed with the assistance of generative artificial intelligence and reviewed, edited, and verified by the author/advisor prior to publication.
