By Andrew Comstock, CFA®
Many parents contribute to college funds for their children. However, the rising cost of tuition and fees means that covering the entire cost of higher education is becoming increasingly difficult.
Students aren’t the only ones taking on thousands of dollars in debt to pay for college. Currently, about 3.9 million parent borrowers owe a combined total of $112 billion in Parent PLUS loans.
In financial planning discussions with parents, I find that we spend more time discussing their children’s education than any other topic. It’s clear that parents want to give their kids every opportunity at success, but many have the same question: how much should parents contribute to college?
The answer is specific to each family. Some families have a set percentage or dollar amount they would like to pay, some focus on as much as they can afford, and others want to cover all expenses. It varies based on income levels, how you want to motivate your children, your own education experience, and your family values.
Let’s take a look at how most parents contribute to college.
The Real Cost of College
According to Sallie Mae’s 2025 “How America Pays for College” report, the average family spent $30,837 on college expenses for the 2024-2025 academic year. That’s a 9% increase over the previous academic year.
The report found that families relied on a number of different funding sources to pay for college:
- 48% paid with family income and savings.
- 27% benefited from grants and scholarships.
- 23% took out loans.
- 2% had help from friends or family.
The key takeaway is that you rarely pay sticker price for college, and you don’t have to try to save for all four years before your children are 18. While many parents contribute to college costs, students also usually have some financial responsibility, either by working or obtaining student loans.
How Parents Contribute to College Expenses
Paying or saving for your children’s college comes down to a couple factors: your ability to save or contribute and your motivation to pitch in. These are very specific to your family’s situation. You may have the means to pay for college but want your children to pay their way through school; but if you don’t have room in your budget, your motivations are moot.
When a client wants to set aside money for a child’s higher education, I typically suggest a 529 plan. These plans have a number of advantages:
- Your contributions can grow tax-free.
- Kansas and Missouri makes some contributions tax-deductible.
- Plans can be used to pay for K-12 education as well.
Financial obligations like mortgages, bills, and retirement contributions all shape how much parents contribute to college over time. You don’t want to stretch yourself thin since you can’t borrow to fund your own retirement. Most parents elect to have contributions automatically deducted from their account or paycheck to fund a college savings account.
I try to avoid having parents take on private student loans or tap home equity to pay for college, but in some cases, it is unavoidable. If you have the financial capacity to save, contribute, or take on debt to fund your children’s education, that is great.
However, keep in mind that covering the cost of your child’s education isn’t solely your responsibility. Please do not sacrifice your long-term financial goals to over-contribute for college.
How Much Do You Want to Contribute?
Many parents contribute to college, and some families have the means to cover their children’s college education in full. These families often wonder whether they should.
There’s no easy answer, and your own experience with college is likely to shape your decision. If your college was paid for and you had a successful experience, you’ll probably want to give your kids a similar opportunity.
On the other hand, if your college was paid for and you were not motivated because you had no skin in the game, you might choose to fund some (but not all) of your child’s tuition. And if you struggled to pay for college on your own, you may want to offer your children a better option.
Motivating your children as students should be something you consider as well. Knowing they have a five-figure student loan waiting for them may motivate them to get out of school on time with excellent grades. You’ll have a better idea of how to best motivate your children once they are in middle or high school.
Tips for Successful Saving
When parents contribute to college savings for their children, following these tips may help them make the most of their money:
- Start contributions early.
- Make room in your budget for college contributions.
- Save what you can, but don’t go into debt saving for college.
- Automate the savings process.
Remember that you don’t have to save for 100% of college costs before your children head off to the university. Not all parents contribute to college costs, so every penny you save gives your child an advantage.
Plan Ahead for Your Children’s Future
Many clients who ask, “How much should parents contribute to college?” expect a simple answer. The truth is that the amount you save is up to you and your circumstances.
Student loans are a reality for most college students —and many parents as well. An overwhelming student loan balance does not have to be an issue if you plan early. At Beyond Wealth, we focus on helping high-income professionals and families build strong financial futures. If you’re looking for guidance on saving for college, contact us. Don’t hesitate to call (913) 871-7980 or email andrew@beyond-wealth.com to schedule a time to meet!
About Andrew
Andrew Comstock, CFA® , is Principal & Wealth Advisor at Beyond Wealth, a fiduciary financial advisory firm in Overland Park, Kansas, dedicated to empowering clients to make impactful financial decisions. Serving the Kansas City metro area, Beyond Wealth specializes in helping wealth-building professionals and business owners navigate life transitions. With a mission to provide comprehensive wealth management services, Andrew’s proficiency lies in leveraging his background in institutional investment management to create tailored investment strategies. He provides research-driven portfolio management, focusing on helping clients build wealth for key milestones, whether it’s buying their forever home, purchasing a business, or funding their children’s education. Alongside Brandy, Andrew combines comprehensive planning with a long-term investment approach, helping clients grow their wealth while enjoying life.
Andrew began his career in institutional investment management, managing portfolios for insurance companies, pension funds, and mutual funds. Inspired by a desire to make a more personal impact, he transitioned to advising individuals directly, bringing his passion for financial empowerment to Beyond Wealth. Known for his commitment to high standards and always seeking to grow and discover, Andrew is dedicated to delivering thoughtful, tailored strategies for his clients’ unique financial needs.
Andrew graduated from the University of Tulsa with a BSBA in Finance and obtained the Chartered Financial Analyst® designation. Active within his professional community, he’s a member of the CFA Institute, Kansas City CFA Society, and the Overland Park Rotary Club. Andrew is a past president of his Rotary club, served on the University of Tulsa’s Board of Trustees, and was the National Board President of the Alumni Association at TU. He is the Investment Chair for the Catholic Foundation of Northeast Kansas. Outside of work, Andrew is a devoted Chiefs, Royals, Sporting KC, and Everton fan who loves exploring KC’s vibrant restaurant scene, especially the BBQ hotspots. With dual citizenship in the U.S. and Ireland and experience living in Switzerland, he’s an avid traveler who’s visited 37 countries and counting. Andrew is also a proud cancer survivor, a perspective that reinforces his commitment to helping families feel confident about their financial futures while embracing the present. To learn more about Andrew, connect with him on LinkedIn.
