Smart Strategies for Supporting a College Student Financially
Graduation season is in full swing—a time of celebration, reflection, and, for many families, the realization that college is just around the corner. Whether you’re a parent or a grandparent, supporting a loved one through higher education can be one of the most meaningful (and expensive) gifts you’ll ever give. The good news? With some planning and the right tools, it’s completely possible to help without sacrificing your own financial well-being.
If You Have Young Children or Grandkids: Start Small, But Start Now
It’s never too early to begin saving for college. Even modest monthly contributions can add up over time—especially when they’re invested in accounts with potential for growth.
You don’t need to master every financial tool to get started. Whether it’s a 529 plan, a custodial account, or simply a designated savings account in your name, the key is consistency. Choose the vehicle that feels most comfortable to you, and don’t let perfectionism prevent action. Every dollar saved now is one less that will need to be borrowed later.
As College Approaches: Get Strategic
When the college years are just a few years away (or already here), it’s time to get more intentional. Now’s the moment to ask:
- Where is the money? Review all your accounts and consider how funds can be used—some may have tax advantages or restrictions.
- How will you pay? Consider a blend of sources: savings, student jobs, scholarships, financial aid, and, when necessary, student loans. A solid payment plan usually includes a mix.
- Is the student involved? Students who contribute even modestly—through work or scholarships—tend to be more invested in their education. It’s worth having conversations early and often about expectations and shared responsibility.
Our On Purpose Financial Advisors can help create a tailored strategy that balances supporting your student with protecting your retirement and other financial goals.
Understanding Student Loans: What You Need to Know Now
The world of student loans has been shifting rapidly. From paused payments to forgiveness proposals to new income-driven repayment plans—it’s a lot to keep up with.
If you or your student already have loans, or are considering them, it’s essential to stay informed. The best advice? Keep an eye on updates from Federal Student Aid—the official source from the U.S. Department of Education. They offer real-time updates, repayment calculators, and clear explanations of current and upcoming changes.
Working with a financial advisor can also help you sort through what’s relevant to your situation and avoid costly missteps.
Bottom Line: Planning Pays Off
Paying for college doesn’t have to be overwhelming. Whether you’re just starting to save or knee-deep in tuition payments, there are options—and support—available. At On Purpose Financial, we help families like yours navigate college planning with clarity and confidence, keeping your student’s success and your long-term goals in balance.Need help planning for college or navigating student loan options?Contact us to schedule a conversation. We’d love to support your family’s next big chapter.
Material Prepared by Tic Tac Toe Marketing, an independent third party. Any opinions are those of the author, are subject to change without notice and are not necessarily those of Raymond James. This material is being provided for information purposes only and does not purport to be a complete description of the securities, markets, or developments referred to in this material and does not constitute a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Investing involves risk and investors may incur a profit or a loss regardless of strategy selected. As with other investments, there are generally fees and expenses associated with participation in a 529 plan. There is also a risk that these plans may lose money or not perform well enough to cover college costs as anticipated. Most states offer their own 529 programs, which may provide advantages and benefits exclusively for their residents. Investors should consider, before investing, whether the investor’s or the designated beneficiary’s home state offers any tax or other benefits that are only available for investment in such state’s 529 college savings plan. Such benefits include financial aid, scholarship funds, and protection from creditors. The tax implications can vary significantly from state to state. Neither Raymond James Financial Services nor any Raymond James Financial Advisor renders advice on tax or legal issues, these matters should be discussed with the appropriate professional.