Planning Ahead
- The cost of education remains a significant financial challenge for many families, and many underestimate the price.1
- College tuition has steadily risen over recent years, and the 2023-2024 school year is no exception. The average in-state tuition at a public college is $10,662 and out-of-state is $23,630. Private college tuition is $42,162.1
- Between 1977 and 2024: College tuition experienced an average inflation rate of 6.08% per year. This rate of change indicates significant inflation. According to the U.S. Bureau of Labor Statistics, prices for college tuition and fees are 1,502.25% higher in 2024 versus 1977 (a $300,450.36 difference in value). 2
How a WFG Agent Can Help
- A licensed WFG agent can help your family determine how much you’ll need to save for your kids’ education and design a plan that considers the type of college they plan to attend and the expected inflation rates.
- Our agents can educate families about different college savings plans available to them. WFG can also help families review their financial aid eligibility and navigate the financial aid process.
- In addition to higher education planning solutions, our team can show you how to save for K-12 and other education expenses before college.
Frequently Asked Questions
When should I start saving for my child's education?
Start saving for your child's education as early as possible. The cost of a college education can be significant, and starting to save earlier allows you to take advantage of compound interest over time. Suppose your child is close to entering college and you need to save more. In that case, a WFG independent agent can help you explore all available options, including scholarships, grants, and student loans.
How much should I save for education?
The cost of a college education is quite variable depending on the type of institution your child will attend and the number of years they’ll need to complete their degree. When an independent agent from World Financial Group helps estimate the cost, we’ll factor in inflation and reassess the plan regularly to accommodate your financial situation, and your child's educational plans.
Can education loans be a substitute for saving?
While education loans can provide a way to cover college expenses when you don’t have enough savings, they are not a one-to-one substitute. Relying solely on loans can lead to a significant debt burden after graduation and put a strain on your financial freedom after college. Furthermore, the interest on education loans can substantially increase the cost of your education overall.
How can I save for education while managing other financial goals?
Balancing education savings with other financial priorities like raising a child, retirement, and buying a home is a common concern. WFG’s independent agents know how to create a budget that considers your income, expenses, and long-term financial goals. With specific financial targets, it’s easier to plan out how you’ll allocate your spending from month to month.
We Are Here to Help
Need help creating a financial strategy for your education savings? Work with an agent to create an education plan today.