In today's fast-changing, technology-driven world, many jobs require education beyond high school, whether that means a college degree or specialized training. While higher education can open doors to opportunity, it can also be costly for parents who choose to help cover the expense.
The Cost of Education
College costs have increased steadily for more than two decades, rising faster than changes in the Consumer Price Index. For 2025-26, published tuition and fees for full-time undergraduate students continue to increase.1
Average Tuition and Fees for 2025–26
| Institution Type | Average Tuition and Fees | Increase from Prior Year | Percentage Increase |
|---|---|---|---|
| Public four-year, in-state | $11,950 | $340 | 2.9% |
| Public four-year, out-of-state | $31,880 | $1,060 | 3.4% |
| Public two-year, in-district | $4,150 | $110 | 2.7% |
| Private nonprofit four-year | $45,000 | $1,750 | 4.0% |
These figures reflect published tuition and fees only. They do not include room and board, books, transportation, or other related expenses, which can significantly increase the total cost of attendance.
Determine What College Costs You Will Pay For
Many parents place a high priority on supporting their children and helping them prepare for adulthood. However, opinions vary on how much responsibility parents should take for higher education expenses. Some parents expect their children to cover part of the cost through work, scholarships, or student loans. Ask yourself these questions:
- How much do you believe you can accumulate for education expenses?
- What methods do you think will help you accomplish your college savings goal?
When Two Children Head to College
When more than one child is involved, parents must consider the timing of expenses and whether there will be overlap if two children attend college at the same time. Think about this:
- If there could be an overlap in expenses due to your children's ages, where can you save and invest that gives you access to funds when needed?
- Do you want to set up separate accounts for each child, or accumulate one large pot of money?
Emphasize How to Afford College
Rather than focusing only on which school your child will attend, concentrate on how your family will cover the cost. Ask these questions with your child:
- What type of school might they attend?
- How far from home feels manageable for both you and your child?
Calculate a Monthly Savings Goal for College
Start by understanding what college or specialized education may cost. Research different schools and programs to estimate total expenses. Think about these questions:
- Are you prepared for how much costs may increase in the future?
- Are you willing to adjust current spending to commit to a monthly savings amount?
- Should you consider a strategy that helps provide funds if you live, die, or become disabled?
Make Your College Savings Plan Flexible
Most families face unexpected events at some point, so it is wise to build flexibility into your approach. Ask yourself:
- Are you more comfortable with a strategy that takes on moderate risk, or one with higher return potential and greater chance of loss?
- How important is liquidity and access to your funds?
Life Insurance May Be Able to Help
Because of its potential tax advantages, life insurance may be one option to consider as part of a broader college funding strategy.
The death benefit could help cover college expenses if a parent passes away. In most cases, life insurance values are not counted as a resource when determining eligibility for financial aid. It may also work alongside other funding methods, such as education savings accounts and qualified state tuition savings plans.
Life insurance may provide tax-deferred access to cash value through policy loans. Withdrawals may be taxable and will reduce the death benefit. Loans accrue interest. Loans and withdrawals may create income tax liability, reduce the account value and death benefit, and could cause the policy to lapse. Sufficient premium payments and account value are required to cover insurance costs and charges.
Conclusion
Paying for higher education or specialized training often requires a combination of savings, current income, and long-term strategies. By understanding rising tuition costs, setting clear goals, and reviewing different funding options, families can build a practical approach that aligns with their priorities and resources. Thoughtful preparation today can make future education expenses more manageable.
Sources
- Highlights: Trends in College Pricing. https://research.collegeboard.org/trends/college-pricing/highlights.