Back-to-School Financial Planning: Helping Your Children Without Losing Sight of Your Retirement

September brings the official start of the Fall season and the familiar rhythm of backpacks, school schedules, college applications, and new beginnings. For parents and grandparents, it can also bring a more complicated question: How can I help my children or grandchildren with education costs while still protecting my own financial future?

That question becomes especially important for families approaching retirement. Helping a child attend college is a meaningful goal, but it should be coordinated with your broader financial plan rather than treated as a separate financial decision.

At SF Financial Services, we believe financial decisions work best when they are viewed as part of the larger picture. Education funding, retirement income, taxes, investments, insurance, and family goals can all affect one another. The goal is not simply to pay for college; it is to help your family pursue educational opportunities without creating unnecessary financial pressure later.

Start With the Education Goal

Before deciding how much to contribute toward college, begin by defining what you are actually trying to accomplish.

Are you hoping to pay for a portion of tuition? Do you want to cover four years of college? Are you helping with books, housing, or other qualified education expenses? Perhaps you are a grandparent who wants to contribute to a grandchild’s future without taking on responsibility for the entire cost.

There is no single correct answer.

The important step is to establish a realistic target and then determine how that goal fits within your household’s overall financial resources.

The SEC’s Investor.gov explains that 529 plans are tax-advantaged savings plans designed to encourage saving for future education expenses. The SEC notes that there are two broad types of 529 plans: education savings plans and prepaid tuition plans. 

That makes a 529 plan an important option to understand, but it should be considered within the context of your complete financial strategy.

529 Plans Can Be a Valuable College-Savings Tool

A 529 plan, legally known as a qualified tuition program, allows money to be set aside for eligible education expenses. According to the IRS, earnings in a qualified tuition program can accumulate tax-free, and distributions generally are not taxable when used for qualified education expenses. 

Depending on the circumstances, qualified expenses can include tuition, fees, books, supplies, and other eligible costs associated with higher education.

The IRS also notes that certain rules have expanded the ways 529 assets may be used, including limited student loan repayment and certain postsecondary credentialing expenses. In addition, current law provides a pathway for certain long-term 529 accounts to make limited Roth IRA rollovers for the beneficiary, subject to specific requirements and limitations. 

These provisions make it worthwhile to understand today’s rules rather than relying on what you may remember about college savings from years ago.

Don’t Sacrifice Retirement to Fund College

There is an important financial planning principle that parents sometimes overlook: your child may have several ways to pay for education, but you have a limited number of years to prepare for retirement.

Students may qualify for scholarships, grants, work-study programs, loans, employer assistance, or other educational resources. Your retirement income, however, generally needs to be supported by the assets and income sources you have accumulated over your working years.

That does not mean you should not help your children.

It means the amount and method of that help should be intentional.

If paying college tuition requires you to withdraw heavily from retirement accounts, postpone retirement, take on substantial debt, or reduce the assets available for future healthcare and living expenses, the family may ultimately face a different financial problem later.

This is one reason education planning should be coordinated with retirement planning rather than handled independently.

FAFSA Still Matters

Families should also understand that saving for college is only one part of the education-funding equation.

The Federal Student Aid office provides the Free Application for Federal Student Aid, or FAFSA, which is used to apply for federal and certain state and institutional financial aid. The 2026–27 FAFSA covers the July 1, 2026 through June 30, 2027 academic year, and families should pay attention to federal, state, and individual college deadlines because they can differ. 

Even families who believe they may not qualify for significant financial aid should investigate the process and understand the deadlines.

College planning is not simply about accumulating money. It is also about understanding the available resources and making informed decisions about how those resources fit together.

A Back-to-School Financial Checklist for Parents and Grandparents

As the new school year gets underway, consider taking these steps:

• Review your current college savings and determine whether your contributions are still appropriate.
• Revisit the expected cost of the child’s education rather than relying on an old estimate.
• Check whether a 529 plan is appropriate for your family’s circumstances.
• Understand how scholarships, grants, FAFSA, student employment, and other resources may contribute to the overall education strategy.
• Consider how college contributions affect your retirement savings and future retirement income.
• Review beneficiary designations and account ownership on education accounts.
• If you are a grandparent, coordinate your education contributions with the parents and consider the potential tax and financial-aid implications.
• Avoid making a large financial decision simply because another family member is doing it.

The Bigger Picture: Family Financial Fitness

Education planning is ultimately about more than paying a tuition bill. It is about helping the people you love while maintaining the financial strength to support yourself throughout the rest of your life.

That philosophy is consistent with the conversations we have on Retire Financially Fit, our radio show and podcast. We regularly discuss the importance of looking beyond a single financial decision and considering how today’s choices can affect tomorrow’s retirement income, financial security, and peace of mind. SF Financial Services describes the program as a resource for strategies designed to help keep retirement assets on track. 

As I have learned from working with families for more than two decades, financial planning becomes much more meaningful when it connects the numbers to the people and goals behind them.

Your child’s education may be one of the most important investments you ever make. Just make sure it does not unintentionally become an investment that puts your own retirement at risk.

The best family financial plan is one that helps the next generation move forward while allowing you to move confidently into your own next chapter.

Helpful Resources

• IRS Qualified Tuition Programs (529 Plans): The IRS provides current information about qualified education expenses, contributions, distributions, and applicable 529 rules. Internal Revenue Service
• SEC Investor.gov — Introduction to 529 Plans: A useful overview of 529 plans and the questions investors should consider before opening an account. 
• Federal Student Aid — FAFSA: Families should review current federal, state, and school-specific financial-aid deadlines. 
• Retire Financially Fit: Barbara Swiatek’s radio show and podcast offers additional conversations about financially healthy retirement planning

This article is for educational purposes only and does not constitute individualized investment, tax, Social Security or legal advice.

“Investment advisory services offered through Brookstone Wealth Advisors, LLC (BWA), a registered investment advisor and an affiliate of Brookstone Capital Management, LLC. BWA and SF Financial Services are independent of each other. Insurance products and services are not offered through BWA but are offered and sold through individually licensed and appointed agents.”