Education needs change as children grow. Your plan to cover educational costs should adapt to their needs. Start planning ahead now to help reduce financial stress and make it easier to manage these expenses over time.
Elementary school: start planning early
The elementary years are often when education-related expenses become a regular part of the family budget. School supplies, backpacks, lunches, field trips, sports programs, summer camps, and before or after-school care can quickly add up throughout the year.
One helpful strategy is to create a dedicated category in your household budget for school-related expenses. Contributing a small amount each month can help spread out costs rather than having to absorb large expenses during back-to-school season or before extracurricular activities begin.
You can also take advantage of the Dependent Care FSA (DCFSA) through HPE. You might have already used this benefit to help cover daycare or preschool costs and can continue to use it for qualified dependent care costs as your child or children grow.
This is also a good time to start thinking about longer-term education goals. If college is part of your family's plan, consider opening a 529 college savings plan. Starting early can give your contributions more time to potentially grow and may reduce the amount you need to save each month later on.
In addition, review expenses annually. As your child develops new interests, whether in sports, music, art, or other activities, you can better anticipate future costs and adjust your budget accordingly.
High school: prepare for bigger commitments
Many families find that educational expenses increase significantly during high school. In addition to basic school supplies and activity fees, families may encounter costs related to technology, transportation, athletic programs, school trips, tutoring, standardized test preparation, and college entrance exams. On top of that, your teen may want a car to get to and from practice or work. This can add a whole other list of expenses to your budget, including line items like gas and maintenance.
Start money conversations with your teen now. Helping teenagers understand budgeting, saving, and spending can prepare them for their future. For example, if they have a part-time job, they could set some money aside for personal expenses, future education costs, or other savings goals.
It’s also a great time to consider future higher education costs. Researching colleges, trade schools, or other post-secondary options can provide a clearer understanding of future costs.
College and trade school: manage the full cost of education
Tuition is just a part of higher education expenses. Students and families should also plan for housing, textbooks, transportation, technology, student fees, healthcare expenses, meal plans, and personal spending.
It’s recommended that students create a semester or annual budget to help understand where their money is going. Tracking expenses regularly can make it easier to identify spending patterns and stay within budget.
Families should also carefully review available financial resources, including savings, scholarships, grants, work-study opportunities, and student loans. If borrowing becomes necessary, take time to understand interest rates, repayment terms, and the long-term impact loans may have after graduation. For additional support and savings, check out the benefits for dependents ages 18-25 offered by HPE.
And remember, if you’ve been saving in a 529 Plan, those funds can help cover qualified educational expenses now and then become retirement savings in the future.
© 2026 FMR LLC. All rights reserved.
ERNA
Tutoring and testing support
Help your child reach their full academic potential with tutoring for English, math, science, reading, and test prep for SAT, ACT, and standardized tests.
