Education Funding

Like any goal, the sooner you start saving for a child or grandchild’s education, the easier it is to achieve. But even if tuition bills are closer on the horizon than you care to admit, there are ways to catch-up and help the next generation finance their dreams.

 

Today, attendance at an average four-year private university costs $43,350, which is $1,610 higher than in 2023-24 (3.9% before adjusting for inflation).1

Things to consider

Student loan debt is about $1.773 trillion, with the average student loan balance of $38,275.2 As a parent or grandparent, you want to do as much as you can do to minimize the financial burden your child has to carry as they start their adult journey.

 

A pie chart with three sections

Plan in thirds

On average, about one-third of a student’s college costs are funded by scholarships and aid, another one-third comes from parent income and savings, and the final one-third will be in student loans.

A calculator

Take advantage of a 529 Plan from K through college

Consider using a 529 Plan to tax-efficiently save for your children or grandchildren’s K-12 education costs.

A person talks with three other people

Encourage your children to save

From birthday money when they’re young to income from part-time high school jobs, consider offering to match your child’s college savings fund.

A hot air balloon

Think retirement first

Be careful not to focus so much on education saving that you end up derailing your own retirement plan.

1 College Board, Trends in College Pricing, 2025
2 Education Data Initiative, January 2025

What to ask your Janney Financial Advisor

  • What options do I have to save/invest for my child’s education?
  • Will money that I save in a 529 Plan account impact my child’s eligibility for financial aid?
  • Given my current financial situation, what’s the optimal balance between retirement and college savings?
  • How can I figure out how much I’ll need to save each month to meet my educational savings goals?

 

 

 

 

Explore our Education Savings calculator, available in Online Access



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Talk to a Janney Financial Advisor

You don’t have to navigate your financial journey alone. Wherever you are today, a Janney Financial Advisor can help you create a personalized plan aligned with your goals, priorities, and evolving needs. With thoughtful guidance and strategies tailored to your unique circumstances, we’ll work with you to build a plan designed to help you Plan for More™ — today and in the years ahead.


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