What Should Parents Budget for College Expenses Outside of Their Fully Funded 529s?

My goal is to be able to put my children through college. And to that end, I’ve been funding a 529 account since they were babies.

But when I talk about paying for college in full, I don’t just mean tuition, fees, and room and board. There are numerous expenses parents need to budget for in the context of a college education. Here are some to keep on your radar.

Textbooks and supplies

When I went to college, most people bought course materials from the campus bookstore. These days, there are so many options for procuring books and materials, which is a good thing, since it can be a source of savings.

Still, it’s an expense that needs to be budgeted for. And it can be difficult to pinpoint a number.

Most colleges, however, include an estimate for books and supplies, so you can refer to that for more guidance. And for context BestColleges says that in 2022-2023, the average cost of books and supplies for a first-year student was about $1,200.

Housing and meals

A lot of colleges offer room and board. But if you’re not signing up for that, you’ll need to budget for it separately.

In some cases, it can be cheaper to live off-campus and split rent and groceries with friends. But it really depends on the situation, so this is something that’s important to research.

Supplies and technology

By the time your child gets to college, they might already have a laptop and cell phone. But they may need a better laptop once they become a full-time student.

Also, you may need to account for the cost of a separate WiFi bill, since they won’t be living under your roof. And they may need access to a better phone plan, depending on the situation.

Plus, electronics don’t last forever. So you may want to budget for at least one laptop and phone replacement over the four years your child might attend college.

Travel

Unless the college your child is attending is right down the street, they’re going to need a way to get back and forth. That could mean paying for airfare or a car, which comes with insurance and maintenance costs.

That said, some colleges don’t allow first-year students to have a vehicle on campus. So you’ll need to see what options are available to you.

Personal care and clothing

Your child might have their meals covered if you’re paying for room and board. But they still need personal care supplies like toothpaste and over-the-counter medications. And they still need clothing, shoes, and other such items.

You can start by taking inventory of what your child has to try to build a yearly budget for clothing. But keep in mind that if your child is living in a dorm, they may end up losing some of their stuff.

Entertainment

You don’t want your child to not have a social life at college. But if you want them to have the option to go out with friends, they’ll need money.

You could make a rule that your child has to work for spending money. That’s actually my plan.

While I hope to be able to cover the cost of tuition, fees, books, and room and board for my kids, I figure that if I’m doing that, they can get a part-time job to pay for things like movies or restaurants with friends. However, if you want to be able to give your child a spending allowance, that’s something to include in your budget.

Run the numbers carefully

College can be a huge expense, and it’s one you need to plan for carefully. The average cost of public in-state college is $11,011 a year, per U.S. News & World Report, while attending an out-of-state public school will cost you $24,513 on average. And if you go private, you’re looking at $43,505.

But these numbers only represent tuition and fees. As you can see, there are many additional expenses you’ll need to account for.

So your best bet is to make a list of your costs and set a budget. And if your 529 plan and other savings can’t cover it all, then you may need to make your child an active participant in paying for their education.

That’s not necessarily a terrible thing, though. Not only does getting a job build character, but it could help your child develop key skills and set them up for an easier time finding work once their studies wrap up.

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