Planning for Education Costs: A Smart Financial Checklist for Families

As summer winds down and back-to-school season ramps up, many families are feeling the financial pinch of educational expenses—whether it’s stocking up on classroom supplies, covering extracurricular fees, or thinking ahead to the long-term cost of college. The truth is, education costs can sneak up on even the most prepared households, which is why a mid-year financial check-in is so valuable.

Whether you’re planning for next week’s school start or the first day of college years from now, taking a proactive approach can make all the difference. Here’s a closer look at what to budget for—and how to build a strategy that keeps your family’s financial goals on track.

What to Budget For: A Mid-Year Education Expense Checklist

Revisiting your family budget now ensures you’re not caught off guard as school-related costs roll in. Here are some common (and often overlooked) items to include:

• Books and Classroom Materials
   Textbooks, workbooks, and school supplies can be surprisingly expensive, especially for upper-level courses or private schools.

• Technology Needs
   Laptops, tablets, headphones, and software are often essential for modern learning, and those costs can quickly escalate as tech evolves or breaks.

• Extracurricular Activities and Sports
   Club memberships, uniforms, equipment, travel, and participation fees for sports, music, or academic clubs can all put pressure on your budget.

• Travel for Campus Visits
   If college is on the horizon, now is a good time to plan for trips to prospective schools. These visits often involve airfare, lodging, and meals—costs that add up fast.

• College Savings Contributions
   Beyond immediate expenses, building a solid foundation for future tuition is critical. Consistent contributions to a college savings plan now can provide relief later.
  
  
  

Why 529 Plans Matter

One of the most powerful tools for long-term education savings is a 529 college savings plan. These tax-advantaged accounts allow your investments to grow tax-free, and withdrawals for qualified education expenses are also tax-free. Key benefits include:

• Flexibility: Funds can be used for tuition, books, supplies, and even some K-12 expenses.

• Ownership control: The account holder maintains control of the funds—not the student.

• Transferability: If one child doesn’t need the funds, you can often transfer them to a sibling or another qualifying family member.
  
  
  

Some states even offer tax deductions or credits for contributions, making this a win-win for many families.

Planning Reduces Stress—and Increases Opportunity

Education is one of the most meaningful investments a family can make. But without a plan, it can also become one of the most stressful. Mapping out short- and long-term costs now helps you make informed decisions, reduce surprises, and give your child the best possible start without compromising your own financial stability.

Let’s Build a Plan That Works for Your Family

Whether your child is just entering kindergarten or heading off to college, Gather Wealth Investment Management can help you develop a personalized strategy that balances today’s needs with tomorrow’s goals. From budgeting to tax-advantaged saving, we’re here to make the journey more manageable—and more rewarding.

The fees, expenses, and features of 529 plans can vary from state to state. 529 plans involve investment risk, including the possible loss of funds. There is no guarantee that an education-funding goal will be met. In order to be federally tax free, earnings must be used to pay for qualified education expenses. The earnings portion of a nonqualified withdrawal will be subject to ordinary income tax at the recipient’s marginal rate and subject to a 10 percent penalty. By investing in a plan outside your state of residence, you may lose any state tax benefits. 529 plans are subject to enrollment, maintenance, and administration/management fees and expenses.