Your child falls in love with a college campus. It’s the perfect school—until you see the price tag. Now what? Does your child accrue massive student loans? Do you raid your retirement?
Stop. Let’s rethink this.
Have the Money Talk Before the Campus Tour
Would you ask a realtor to show you $1 million homes if you have a $400K budget? No. Falling in love with an unaffordable property wastes time and emotion. College shopping works the same way.
Admission professionals excel at selling their schools. Once your child sets foot on campus and envisions themselves there, emotions cloud judgment. By then, discovering the school is financially out of reach hurts.
Have a realistic college cost conversation before campus visits. This ensures everyone understands what’s affordable and prevents your child from accumulating debt or you decimating your retirement. Having solid financial goals that include college funding helps the entire family plan together.
Yes, talking about money is awkward. Many parents feel shame about not saving as much as they hoped. If that’s you: you’re not alone. Life doesn’t always cooperate with financial goals. The conversation needs to happen anyway.
What Is Your Child Looking for in a School? Ask what your child wants from college. What major interests them? How does that translate to a rewarding career? Some students enter college with a clear path; others don’t. Thinking through career direction early reduces the risk of major changes that cost extra tuition.
Discuss multiple schools, not just one. This lets you compare programs and find the best fit. If your child’s dream school feels too expensive, consider starting at community college. Two years there, then transfer to the desired university. Lower costs upfront, same degree on the diploma.
It’s Time to Talk Money Schedule a formal appointment with your child. This discussion is too important to delay. Cover these topics:
- How much is saved now? Is there a 529 Account?
- Can you set aside monthly income for college costs?
- What are the total projected costs?
- How much financial aid will your child qualify for?
- Who pays what percentage?
- What’s the four-year plan and post-college employment outlook?
Use the College Savings Calculator to project costs with inflation and interest factored in.
Calculate Your Expected Family Contribution (EFC)
Start with your EFC—what the federal government believes you can pay. This tool helps you calculate it.
Then check each school’s “Net Price Calculator.” These show your likely financial aid package plus out-of-pocket costs, accounting for both need-based aid and merit scholarships (grades, test scores).
Decide on Your Child’s Role
Families handle this differently. Some parents cover all costs; others want their child to have “skin in the game.” Whatever you decide, communicate it clearly upfront so everyone knows what to expect.
Help Them Understand Loans
Your child likely needs guidance on loans. Help them understand how student loans work and what they’ll cost after graduation.
Some students find working during college helps offset loans or reduces the burden on parents. That’s another conversation to have.
The Bottom Line
The more everyone understands before your child arrives on campus, the less stress for all involved. Clear expectations reduce anxiety. So have the talk—it’s worth it. Understanding financial planning fundamentals as a family will serve everyone well for decades to come.
Start a conversation with us to discuss college planning strategies for your family.
