Helping a child pursue a top-tier education is a meaningful milestone for many families. Whether it’s rooted in academic excellence, family legacy or a belief in the power of opportunity, the choice to invest in a university is deeply personal, often rewarding and carries significant financial weight. With the cost of higher education at an all-time high, even well-prepared families are thinking more intentionally about what that investment means — and how to make the most of it. 

 

Whether you’re touring college campuses this summer or laying the financial groundwork early, here’s some strategic advice to help guide your planning. 

 

1. Understand the full financial picture. Tuition is just one part of the equation —additional expenses such as school fees, books, supplies, room and board and travel can significantly increase the total cost. Participating in Greek life, clubs or extracurricular activities may add thousands more per year. Cost of living in different areas can also impact your budget more than expected.

 

2. Evaluate the return on investment. Elite universities offer access to tight-knit alumniconnections, unique programs and recognition that can benefit certain careers. But thevalue of these advantages often depends on your child’s goals. For some families, it’s worth comparing experiences across institutions and weighing whether funds might be better directed toward graduate school, launching a business or other long-term priorities. 

 

3. Maximize the power of 529s. State-sponsored 529 plans remain one of the most effectivetools to save for college, allowing you to invest, grow and withdraw funds tax free when used for qualified education expenses. In 2025, each parent and other benefactors such as grandparents can contribute up to $19,000 per year, per child, without triggering gift tax consequences. You can also “superfund” the account by making up to five years’ worth of contributions ($95,000 for an individual or $190,000 for a couple’s contribution) in a single year, increasing the potential for growth over time. If one child doesn’t use the full amount, funds can be transferred to another child or converted to a Roth IRA in the beneficiary’s name. 

 

4. Explore flexible paths to a degree. Families have more options than ever to personalize the higher education experience. Some students may qualify for merit-based scholarships— even at private institutions. Others may choose to spend one or two years at a local or community college before transferring to their dream school or commute from home ifthe school is nearby.

 

Whichever path feels right for your family — and aligns with your financial and personal goals— our trusted wealth advisors at Frost can help you navigate this financial decision with clarityand confidence. Contact Brad Clark at 214.515.4870 or Brad.Clark@frostbank.com to learn more.