The cost of higher education has changed significantly over the years, and for many families, paying for college can feel less like covering a few years of tuition and more like taking on another major financial commitment, similar to buying a home.

At the same time, today's parents may be entering their peak retirement-planning years just as their children are entering college, graduate school, or other forms of advanced education. Many parents want to help their children avoid student loan debt, but funding that education shouldn't come at the expense of their own financial security.

The goal isn't necessarily to choose between your child's education and your retirement. It's to create a plan that allows you to support your children’s long-term financial independence without putting your own financial goals at risk.

Don't sacrifice your retirement to pay for college.

An important principle of education planning is that retirement assets generally shouldn't be the first source of funding for college. You have a limited window to save for retirement, and as you approach retirement age, you may not have sufficient time to replace what you borrowed. Your children have broader options to finance education, so it’s important to explore the following alternative avenues.

Look beyond the obvious sources of financial aid.

Families often think about financial aid in terms of needs-based assistance or large academic scholarships. But many scholarships today are not based solely on household income or grades.

Scholarships can be awarded for athletic ability, community involvement, leadership, career interests, academic areas, family circumstances, extracurricular activities, and a number of other accomplishments.

A student who applies for several smaller scholarships may receive meaningful support by combining multiple awards. Beyond the scholarships promoted directly by a university, local nonprofits, foundations, professional organizations, community groups, employers, and even individual academic departments may offer opportunities. In many cases, these awards are relatively small and therefore attract fewer applicants.

The key is to research what’s available and to have the student do the legwork to apply.

Require some skin in the game from your student.

Consider creating a structure where the student contributes toward certain expenses. For example, parents might match what the student earns through a summer job or contribute toward living expenses based on what the student is willing to put toward them. This can help establish a sense of ownership and responsibility—providing an opportunity for your student to learn how to manage money. Requiring a student to contribute toward discretionary expenses can help them distinguish between necessities and choices, which can prevent them from relying on parents for funding every trip, meal out, or other activities that comes with the college experience.

Don't let comparison drive your college spending.

One family might have significant equity compensation or sizable bonuses paid throughout the year to help cover tuition. Another family might not have that flexibility. Trying to match someone else's approach can put unnecessary pressure on your own financial plan.

Your plan to pay for college should account for what you can realistically afford, not what another family appears to be spending. The right education-funding strategy is the one that works for your circumstances today and needs for tomorrow.

Use 529 savings strategically.

Some families have unused 529 funds; you may be eligible to roll them into a Roth IRA for your children, with certain requirements and limits. This can provide an alternative for families who have saved more than is ultimately needed for qualified education expenses.

However, the rules are detailed, including limitations on the amount that can be transferred and requirements regarding the 529 account and beneficiary. Families should evaluate the rules carefully before assuming unused funds can be moved into a retirement account.

Think about the entire family timeline.

For many families, the challenge isn't just the cost of education; rather, it's the timing. Parents may be approaching retirement while their children are entering college, graduate school, or professional programs. In earlier generations, education not only cost less but also many parents retired later and children were on their own to pay for college. Today, many parents want to cover the cost of education to avoid saddling their children with significant student debt, but they also want to retire earlier than previous generations. This creates competing priorities.

These goals can coexist, but only with a plan that considers both your child's education and your own retirement timeline.

Make education funding part of the retirement conversation.

Before committing to fully cover education expenses for your student, consider how the expense affects your retirement savings, investment strategy, cash flow, and timeline for leaving the workforce. If funding a child's education means delaying retirement by several years, that cost should be part of the conversation.

Education is an investment in your child's future, but retirement is an investment in your own. The goal is not to leave your children without support. It's to help them build a financially independent future without putting your financial future in jeopardy.

With thoughtful planning, families can explore scholarships, savings plans, student contributions, and other funding sources while keeping retirement goals on track. The earlier those conversations happen, the more options you’re likely to have and the less likely you are to be forced into a difficult financial decision at the last minute.