Avoid Sticker Shock and Build a Smarter Strategy for Higher Education

Introduction

When families think about saving for college, they often focus on tuition. But tuition is just the beginning. In 2025, the real cost of a college education includes housing, fees, books, travel, and more, expenses that can easily double the “official” price tag. If you’re not planning holistically, you’re not planning realistically.
At Feliciano Financial, we help families prepare for the full financial picture of higher education, without derailing retirement or other life goals.

1. Understand What College Really Costs

The average tuition and fees at a private college are around $42,000/year[1], but that’s only part of the equation.
– Add in room and board ($10,000–$15,000)[2]
– Books, supplies, and technology ($1,200–$2,000)[3]
– Travel and personal expenses ($2,000–$5,000)[4]
– Hidden fees: Lab courses, activity fees, Greek life, study abroad, insurance
Total cost for a private school can exceed $70,000/year[5], and it’s rising annually.

2. Factor in Inflation—Especially for Young Children

If your child is under 10, college costs could double by the time they enroll.
– A 4-year degree could cost $300,000 or more in future dollars.
– Use college cost calculators to get a time-adjusted estimate and set realistic savings goals.

3. Know Your Funding Sources

You don’t have to cover the entire cost yourself—but you do need a plan.
– 529 College Savings Plans*: Tax-free growth when used for qualified expenses
– Financial aid: Need-based aid, merit scholarships, and grants
– Parent resources: Cash flow, savings, loans
– Student resources: Part-time jobs, work-study, modest loans
Holistic Strategy: Consider how much you want your child to contribute—and how it fits into your family’s financial philosophy.

4. Avoid Common Mistakes

– Delaying savings: Starting even 5 years earlier can dramatically reduce the monthly burden
– Over-saving in the wrong accounts: Avoid taxable accounts or savings that count heavily in FAFSA
– Ignoring trade-offs: Funding college at the expense of retirement can backfire
Balance is key. College is important, but your future matters too.

5. Build a Family Education Plan

College planning is about more than just money, it’s about alignment.
– Define your family’s values: Do you prioritize elite schools, debt-free education, or practical ROI?
– Explore alternatives: community college, AP credits, in-state schools, or gap years
– Have open conversations with your children early and often

Holistic Perspective: College as a Launchpad, Not a Landmine

College should be a bridge to opportunity, not a source of long-term stress or debt. That’s why Feliciano Financial integrates college planning into your full financial plan. Together, we’ll ensure your family’s education goals support, not sabotage, your bigger vision.

Call to Action

Let’s create a college funding strategy that fits your family’s finances and future. Contact Feliciano Financial to get started, because your child’s success shouldn’t come at the cost of your future state of residence. For tax advice, consult your tax professional.  Non-qualifying distribution earnings are taxable and subject to a 10% tax penalty or more before retirement.

Learn more about College Planning, or Click to schedule your FREE Feliciano Financial Blueprint Consultation with a Certified Financial Planner or call us directly. (903) 533-8585

*A 529 plan is a college savings plan that allows individuals to save for college on a tax-advantaged basis. Before buying a 529 plan, you should inquire about the particular plan and its fees and expenses. You should also consider that certain states offer tax benefits and fee savings to in-state residents. Whether a state tax deduction and/or application fee savings are available depends on your

References

1. College Board, Trends in College Pricing and Student Aid 2023.
2. NCES and College Board, 2023–2024 estimates.
3. Education Data Initiative, 2023.
4. College Board, Estimated Student Budgets 2023.
5. College Board, Total Cost of Attendance Data 2023.