How Much Will College Cost? Why Families Should Start Planning Earlier Than They Think
By Spencer Schmale
Senior Financial Advisor at Investment Consulting Group
Published August 14, 2026
For many families, saving for a child's education is one of life's biggest financial goals, second only to preparing for retirement. While parents often expect college to be expensive, the pace at which costs have risen has surprised many.
A recent CNBC report highlighted that some private colleges now carry a total annual cost of attendance exceeding $100,000 per year once tuition, room and board, fees, books, and other expenses are included. While these schools represent the upper end of the spectrum, they illustrate just how significant the cost of higher education has become.
The Cost of Waiting
College inflation has outpaced general inflation for many years. Even if your child is still in elementary school, the amount you'll need to save by the time they enroll could be substantially higher than today's published tuition rates.
The earlier you begin planning, the more time your savings have to potentially benefit from long-term investment growth. Starting early may allow you to contribute smaller amounts over time rather than trying to make up for lost years later.
Why a 529 Plan Can Be a Valuable Tool
For many families, a 529 college savings plan remains one of the most effective ways to save for education.
Potential benefits include:
- Tax-deferred investment growth
- Tax-free withdrawals for qualified education expenses
- Flexibility to change beneficiaries if circumstances change
- The ability to use funds for many colleges, universities, trade schools, and other eligible educational institutions
- Recent rule changes that may allow certain unused 529 assets to be rolled into a Roth IRA for the beneficiary, subject to IRS requirements and limitations
Planning with Real Numbers
One of the biggest mistakes families make is estimating future college costs based on today's tuition. Instead, it's important to project what college could realistically cost when your child is ready to attend.
Using college cost calculators and education planning tools can help estimate future expenses based on your child's age, the type of school they may attend, and expected tuition inflation. These projections can help determine whether your current savings strategy is on track, or whether adjustments should be made.
Don't Let College Planning Derail Retirement
Many parents naturally want to help their children graduate with less debt. However, it's equally important not to sacrifice your own retirement security in the process.
Unlike retirement, there are loans available to help pay for college. There are no loans available to fund retirement.
A thoughtful financial plan can help balance competing priorities by coordinating retirement savings, education funding, investment strategy, tax planning, and cash flow management.
Start the Conversation Early
Whether your child is a newborn or already in high school, having a plan can make a meaningful difference. Understanding future education costs, and developing a strategy to prepare for them, can help your family make informed decisions with greater confidence.
At the Investment Consulting Group, we help families incorporate education funding into a comprehensive financial plan that aligns with their long-term goals. If you'd like to discuss your education savings strategy or review whether you're on track, we'd be happy to help.
Securities and investment advisory services offered through Osaic Wealth, Inc. member FINRA/SIPC. Osaic Wealth is separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth.