This article expands on comments I shared in a recent ABC11 interview regarding college affordability, college financial stability, and planning strategies for North Carolina families.
I recently had the opportunity to be interviewed by ABC11 regarding a Forbes analysis that examined the financial health of colleges and universities and what it could mean for students and families.
You can read the full story here:
While only a portion of our discussion was included in the final article, I wanted to expand on several important points that families should consider when planning for college.
Start Saving Early, Even If You Can't Save Everything
One of the biggest misconceptions about college planning is that families either need to fully fund college or not save at all.
In reality, many families may need to save several hundred dollars per month or more to fully cover future college expenses. The exact amount depends on factors such as the child's age, the schools being considered, inflation, and the family's overall financial situation.
However, the most important step is simply getting started.
Whether a family can save $50, $100, or $500 per month, consistent contributions can make a meaningful difference over time. Starting early allows savings to potentially benefit from years of compounding growth and may reduce the amount that needs to be borrowed later.
Treat College as an Investment
College is often one of the largest investments a family will make.
Like any investment, it is worth considering both the cost and the expected return.
That does not mean students should only pursue careers with the highest salaries. Education can provide personal fulfillment, professional opportunities, and benefits that extend beyond income alone.
However, families should be realistic about the financial implications of their decisions.
For example, some career paths may require graduate school or professional degrees before meaningful earnings are achieved. The cost of those future educational requirements should be part of today's planning discussion.
Likewise, if a student plans to enter a field that traditionally offers modest compensation, taking on substantial student loan debt may create financial challenges for years or even decades after graduation.
In these situations, families should carefully evaluate whether a lower-cost educational path could provide a similar outcome with less financial burden.
North Carolina Offers Excellent Affordable Options
The good news is that families in North Carolina have access to several programs that can dramatically reduce the cost of earning a degree.
Through the NC Promise program, undergraduate in-state tuition is currently just $500 per semester at:
• Elizabeth City State University
• Fayetteville State University
• UNC Pembroke
• Western Carolina University
For many students, these schools provide an opportunity to earn a quality degree while minimizing student debt and preserving financial flexibility after graduation.
Community College Can Be a Smart Financial Strategy
Another option that deserves serious consideration is beginning at a North Carolina community college.
Students can often complete general education requirements at a significantly lower cost before transferring to a four-year university. North Carolina's transfer pathways have made this process easier than many families realize.
For some students, this approach can save thousands of dollars while ultimately leading to the same bachelor's degree.
Too often, community college is viewed as a backup plan. In reality, it can be one of the smartest financial decisions available to students and families.
Don't Sacrifice Retirement to Pay for College
One of the most important conversations families can have is how to balance college funding with retirement planning.
While every parent wants to help their child succeed, it is important to remember that students generally have more options to help fund college than parents have to fund retirement.
Students may qualify for scholarships, grants, work-study programs, and student loans.
Retirees do not have retirement loans.
One phrase I often share with families is:
"You can finance an education. You cannot finance a retirement."
If helping pay for an expensive college would jeopardize your retirement security, it may be worth reconsidering the overall plan. That could mean selecting a more affordable institution, utilizing transfer pathways, increasing scholarship efforts, or sharing educational costs with the student.
A financially secure retirement can be one of the greatest gifts parents provide to their children because it reduces the likelihood that future financial support will be needed later in life.
Focus on the Outcome, Not Just the School Name
The college decision should not be based solely on rankings, prestige, or campus appeal.
Instead, families should consider:
• Total expected cost
• Potential student debt
• Career opportunities after graduation
• Additional education requirements
• Graduation rates and outcomes
• Available scholarships and aid
• Long-term impact on family finances
The goal is not necessarily to find the cheapest school.
The goal is to find the educational path that provides the best opportunity for success while preserving long-term financial health.
College planning is most effective when it balances educational goals, career aspirations, family resources, and retirement security. By starting early, understanding all available options, and making thoughtful decisions, families can create a plan that supports both their student's future and their own.
Disclosure
This material is provided for educational and informational purposes only and should not be construed as individualized investment, tax, legal, or financial planning advice. The information contained herein is general in nature and may not be applicable to your specific situation. Investing involves risk, including the possible loss of principal. Readers should consult with their financial, tax, and legal professionals before making any financial decisions. Any opinions expressed are subject to change without notice and do not constitute a recommendation of any specific investment or strategy.