Our Oldest Is Off to College: Reflections and 5 College Planning Tips
A little bit of planning goes a long way.
Written by Crystal Bowles, CFP®
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We just dropped off our oldest child at college for her freshman year. They weren’t kidding when they said “the days are long, but the years are short.” Eighteen years flew by in the blink of an eye. As a parent, it’s a bittersweet milestone, and as a financial advisor, it’s also a vivid reminder of how much the cost of college has soared since my own college days.
Back in the mid-1990s, in-state tuition at the University of Alabama was about $2,500 per year. My total “all-in” cost (tuition, room, board, etc.) was around $6,000–$8,000 per year. Today? The same school charges about $11,900 in tuition and roughly $33,000 a year for the full cost of attendance. Across Alabama’s public colleges, the average is now about $22,000 annually for tuition, room, and board. That is a four- to five-fold increase in just one generation. College inflation is very real.
If you’re planning for a baby born today, here’s what it could look like 18 years from now:
At a 2.5% annual increase, freshman year could cost about $52,000, and the 4-year total would be over $210,000.
At a 5% annual increase, freshman year could be around $80,000, with a 4-year total close to $340,000.
And that is just for a public in-state school. Private or out-of-state could be even more. Few families actually pay the full sticker price thanks to scholarships and aid, but the projections show why planning matters.
5 College Planning Tips for Parents
After 25+ years of helping families navigate this, and now walking through it myself, here are five lessons worth sharing
1. Start saving early (even small amounts matter).
Time and consistency are your best friends. Even $25/month grows into something meaningful. At ~8% annual return:
$25/month → ~$12,000
$100/month → ~$48,000
$250/month → ~$120,000
$500/month → ~$240,000
And if grandparents ask what your child wants for birthdays? Point them toward the college fund. Tax-advantaged 529 plans make these savings even more powerful since the money grows tax-free for education expenses.
2. Involve your teenager in the financial side.
Before campus tours, talk budget. A 17-year-old can fall in love with dorms or a “dream school” without a clue about the price tag. Think of it this way: you wouldn’t test-drive a Porsche without checking the sticker and your bank account first; the same goes for college choices.
Also, federal loan limits are surprisingly low (freshmen can only borrow $5,500). Anything beyond that often falls on parents or private loans. I’ve seen families jeopardize retirement over this. Sit down together, set guardrails, and make sure your teen understands the financial impact of their decision.
3. Ask: Is college the right path right now?
Four-year college is the default, but not always the best fit. Community college, trades, or a gap year might align better with your teen’s goals (and your wallet). It is a huge ask for an 18-year-old to know “what they want to do forever,” so step back and ask: is college the right investment right now?
4. Get key documents in order.
Once your child reaches the age of majority (18 in most states, 19 in Alabama), you lose automatic access to their records. A few forms worth having:
FERPA waiver (lets you see tuition/aid info)
HIPAA release (lets doctors talk to you in an emergency)
Medical Power of Attorney & Advance Directive
Durable Power of Attorney (for financial/legal matters)
These might sound like overkill, but if something happens, you will be glad they are signed. I just went through this with my daughter, and it gave both of us peace of mind.
5. Plan holistically.
College is just one piece of your financial puzzle. Avoid draining your 401(k) or piling on unsustainable debt. Use the tools available, 529s, tax credits, scholarships, and encourage your student to pitch in. Remember my mantra: there are loans for college, but no loans for retirement.
Wrapping Up (and a Personal Note)
Driving away after move-in day was one of the hardest (and proudest) moments I’ve had as a parent. All the planning we did felt worth it, and whether your child is heading to college next year or still toddling around in diapers, now is the time to start preparing. Those “long days” really do turn into “short years” faster than you expect.
If this got you thinking about a college savings strategy (or how it fits into your bigger financial picture), I’d love to help. Reach out through our website to schedule a chat. Here’s to sending our kids off with confidence, and sleeping at night knowing the tuition bill will not sink us.
Sources: National Center for Education Statistics, University of Alabama, U.S. Dept. of Education, CollegiateParent, SavingForCollege.com
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The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.