Preparing for college financially is a journey that begins long before senior year. Families can take strategic steps at every stage of their child’s education to ease the burden of college costs. Here’s a breakdown of what parents can do during early childhood, middle school, and high school to pave the way for college success.

Early Childhood: Laying the Foundation

Starting early with a savings strategy can make a significant difference. Consider opening a 529 plan — a tax-advantaged savings account designed specifically for education expenses. Contributions grow tax-free, and withdrawals for qualified education expenses are also tax-free. This plan can be a powerful tool in your college planning arsenal.

Additionally, instill good financial habits in your child from a young age. Simple lessons in budgeting and saving will set the stage for future financial literacy.

Middle School: Building Awareness and Skills

As your child grows, involve them in conversations about college costs and the importance of saving. This is also a great time to adjust your budgeting strategies, especially if you have multiple children heading to college. Consider using financial tools and advisors to help manage your saving efforts efficiently.

Encourage your child to explore extracurricular activities and skills. These can translate into valuable scholarship opportunities later on.

High School: The Home Stretch

High school is when the college planning efforts come into full focus. Begin by guiding your teen through FAFSA readiness to secure potential financial aid. This federal application is essential for accessing grants, loans, and work-study funds.

Investigate scholarship opportunities; there are countless scholarships available for various interests and achievements. Encourage your teen to apply for as many as possible.

Finally, have open discussions about college expectations and finances. Be clear about what your family can contribute and the student’s responsibility, so there are no surprises later on.

Working with a Financial Advisor

Throughout this journey, a financial advisor for families can be an invaluable resource. They can provide personalized advice on how to save for college, optimize your 529 plan strategy, and manage your overall financial plan for this significant life milestone.

Preparing for college is about more than just saving money; it’s about creating a strategy that evolves with your family. With careful planning and the right resources, you can ensure a smoother transition to college for both you and your student.