August is often associated with the return of routines.

Summer winds down, schedules fill up, and students begin preparing for another school year or semester. For families, that can mean tuition, school supplies, childcare, transportation, and activities. For college students and adults returning to school, it can mean housing, books, technology, reduced work hours, or the cost of pursuing a new degree or career path.

But beneath the familiar back-to-school expenses is a larger financial planning question:

What are we really saving for?

Education is often viewed simply as a cost. But it can also represent an investment in opportunity, career growth, independence, or personal fulfillment.

That makes education planning about more than paying tuition. It requires looking at the full cost, understanding the purpose behind the goal, and considering how education fits alongside other financial priorities.

Because the question is not always whether someone can afford an education. Sometimes the more important question is what that education is meant to make possible.

The Problem: Education Is More Than a Tuition Bill

When people think about the cost of education, tuition is usually the first number that comes to mind, but tuition is only one part of the financial picture.

The U.S. Department of Education's Federal Student Aid office defines cost of attendance as the total cost of attending a specific school. Depending on the institution, this can include tuition and fees, books and supplies, food, housing, transportation, and other expenses.

The National Center for Education Statistics also tracks the broader cost of attendance, including housing, food, books, supplies, transportation, and other expenses. In other words, the financial commitment associated with education extends well beyond the tuition bill.

This matters because the financial impact can look very different depending on the person.

A parent helping a child attend college may be balancing education costs with retirement savings, mortgage payments, emergency savings, or other family responsibilities.

A college student may be balancing tuition with rent, food, transportation, and the cost of living away from home.

An adult returning to school may be balancing tuition with work, childcare, or a temporary reduction in income.

The expense is different, but the planning question is similar:

How does this education decision fit into the larger financial plan?

Three Things Advisors and Clients Should Keep in Mind

1. The Cost of Education Is More Than Tuition

Education expenses can accumulate quickly because many of the costs are spread across different parts of the budget. Students may face:

  • Books and supplies
  • Technology
  • Housing
  • Food
  • Transportation
  • Activity fees
  • Childcare
  • Other personal expenses

For families, there may also be travel costs, additional household expenses, or financial support that continues beyond tuition.

For adults, the opportunity cost can be even more significant. Returning to school may mean working fewer hours, delaying a promotion, taking time away from a business, or using savings that could otherwise support another financial goal.

This is why education planning should consider both direct costs and opportunity costs.

For advisors:

Advisors can help clients look beyond tuition when evaluating an education goal. A useful conversation may include the total expected cost, how those costs may change over time, and what other financial goals could be affected.

For clients:

Consider asking:

  • What will this education actually cost?
  • Have I included expenses beyond tuition?
  • Will this decision affect my income?
  • What other financial goal could be delayed because of this expense?

Understanding the full cost does not necessarily mean deciding against the education. It simply creates a clearer picture of the decision.

2. The Value of Education Depends on the Goal

Education does not have one universal definition of financial value.

For one person, a degree may be necessary to enter a particular profession. For another, a graduate degree may be part of a career transition. For a parent, helping a child attend college may be about creating an opportunity that the family considers important. For someone later in life, returning to school may have less to do with maximizing income and more to do with learning, purpose, or pursuing a long-held goal.

There is evidence that education can have meaningful economic benefits. According to the U.S. Bureau of Labor Statistics, in 2024, full-time workers age 25 and older with a bachelor's degree had median weekly earnings of $1,543 and an unemployment rate of 2.5%. Workers with a high school diploma had median weekly earnings of $930 and an unemployment rate of 4.2%. Workers with master's, professional, or doctoral degrees had higher median earnings and lower unemployment rates.

These statistics do not mean every degree will produce the same financial outcome. Career field, location, work experience, cost of attendance, student debt, and many other factors matter. However, they demonstrate why education can be more than a current expense. For some individuals, it can be part of a longer-term income and career strategy.

For advisors:

Instead of asking only, "Can the client afford this?" consider asking:

  • What is the client hoping this education will make possible?
  • Is the goal increased earning potential, career flexibility, personal fulfillment, or something else?
  • What assumptions are being made about the future?

For clients:

Consider asking:

  • What am I actually trying to accomplish through this education?
  • What would success look like five or ten years from now?
  • Am I evaluating the cost without considering the potential benefit?

The goal is not to assume that education always pays off financially. It is to understand what the money is intended to accomplish.

3. Funding Education Should Not Mean Abandoning the Rest of the Financial Plan

One of the most difficult financial decisions for families can be determining how much they should contribute toward someone else's education. Parents may want to provide every opportunity possible. But helping a child financially can sometimes compete with the parents' own long-term financial security. The same issue applies to individuals. Someone returning to school may be investing in their future career while simultaneously reducing retirement contributions or using emergency savings.

Financial planning is often about competing priorities rather than choosing between a "right" and "wrong" decision.

Education may be important.

Retirement may be important.

Debt reduction may be important.

Emergency savings may be important.

The challenge is determining how these goals can coexist.

There are also tax considerations that can be part of the conversation. The IRS outlines several education-related benefits, including the American Opportunity Tax Credit, Lifetime Learning Credit, and qualified tuition programs such as 529 plans. Eligibility and rules vary, and the same expenses generally cannot be used to claim multiple education benefits.

For advisors:

Education planning should be integrated into the broader financial plan rather than treated as a separate goal. That may mean discussing:

  • Education savings
  • Cash flow
  • Retirement contributions
  • Student loans
  • Tax considerations
  • Financial aid
  • Estate planning
  • The appropriate level of family support

For clients:

Consider asking:

  • How much can I realistically contribute without putting my own financial security at risk?
  • Am I sacrificing a long-term goal to fund a short-term expense?
  • What happens if education costs more than expected?
  • What happens if the student's plans change?

Supporting education does not have to mean funding every expense. Sometimes the strongest financial plan is the one that establishes clear boundaries while still supporting an important goal.

Why This Matters

Back-to-school season provides a useful reminder that financial planning is rarely about one isolated expense. Education decisions can affect:

  • Cash flow
  • Debt
  • Retirement savings
  • Career opportunities
  • Family responsibilities
  • Tax planning
  • Long-term financial independence

That is why education planning deserves to be part of a broader financial conversation.

For advisors: the goal is not simply to calculate whether a family can afford a tuition bill. It is to understand how an education goal fits within the client's entire financial life.

For clients: the goal is not necessarily to find the cheapest option or to maximize spending. It is to understand what the education is intended to accomplish and whether the financial commitment supports that goal.

Take a Different Look at Back-to-School Season

August may bring new schedules, new classes, and new expenses, but it can also be an opportunity to revisit financial priorities.

Before the new academic year begins, consider:

  • What are we really trying to accomplish?
  • What will this education cost beyond tuition?
  • What are we giving up to fund it?
  • How does this goal fit with the rest of the financial plan?

Education can be an expense. It can also be an investment in opportunity, independence, career growth, or personal fulfillment. The important question is not simply whether education is worth the cost. It is whether the financial plan reflects why the education matters in the first place.

Because financial planning is not only about having enough money to pay for the next semester. It is about making thoughtful decisions today that create opportunities for the future without losing sight of the other goals that matter along the way.