How to Pay for College Without Sacrificing Your Financial Freedom

The Real Cost of College

College costs have continued to rise, and for many families, the numbers can feel overwhelming. The average published charges for a four-year public university—including tuition, fees, room, and board—can easily exceed $25,000 per year for in-state students, and $45,000 or more for out-of-state. Private universities? Expect $60,000 or more annually. Multiply that by four years—or more—and the question becomes: How do you pay for your child’s education and still stay on track for your own financial freedom?

The answer starts with a powerful question: Should you pay for all of it?

Should You Pay for Your Child’s College?

As a parent, you want to give your child every advantage. But footing the entire bill for college isn’t always the best way to set them up for success. Research shows that when students have some financial “skin in the game,” they’re more engaged and perform better academically. In fact, parental aid can increase graduation odds, but it can also lower student GPAs.

My philosophy: Empower your child to take responsibility for their education. Give them the gift of ownership, not just a free ride.

“When you are committed, there is always a way.” —Tony Robbins

Tony’s Wealth Principles for College Planning

1. Don’t Sacrifice Your Financial Freedom

• Your first responsibility is to your own financial security. If you drain your savings or retirement to pay for college, you put your future—and your child’s—at risk.
• Remember: “It’s not about your resources, it’s about your resourcefulness.” Teach your child to be resourceful, too.

2. Make Your Child a Partner in the Process

• Have your student research costs, scholarships, and financial aid. Let them create a budget and understand the true investment.
• Encourage part-time work during school. Studies show students who work up to 15 hours a week often have higher retention and better time management.

3. Match, Don’t Cover

• Consider matching scholarships or grants your child earns, or contributing a set amount for each one. This rewards effort and keeps them invested.
• You might pay a portion, but let them cover the rest through work, aid, or loans.

4. Provide Guidance, Not Bailouts

• Be a mentor as your child learns to manage money, apply for jobs, and communicate with landlords or employers.
• If they make mistakes, let them learn and grow. Don’t rescue them from every challenge—show them you believe in their ability to solve problems.

Smart Strategies to Lower College Costs

1. Shop for Value, Not Just Prestige

• Compare net costs after scholarships and aid, not just sticker prices.
• Negotiate with financial aid offices—sometimes a better offer from another school can lead to more aid.

2. Consider Community College or International Options

• Starting at a community college and transferring can save tens of thousands.
• Some international universities offer world-class education at a fraction of U.S. prices.

3. Explore Non-Traditional Paths

• Not every student needs a four-year degree. Trade schools, online programs, and entrepreneurial fellowships (like the Thiel Fellowship) can offer high-value alternatives.

Practical Ways to Fund College

1. Save Strategically

• Use a 529 plan or other tax-advantaged accounts. Keep the account in your name to maximize financial aid eligibility.

2. Apply for All Available Aid

• Always fill out the FAFSA and CSS Profile, even if you think you won’t qualify.
• Search for scholarships based on interests, background, and intended major.

3. Make a Trade

• Programs like AmeriCorps, ROTC, or National Health Service Corps offer tuition assistance in exchange for service.

4. Take Advantage of Tax Benefits

• Stay up to date on credits like the American Opportunity Tax Credit, which can offset thousands in tuition costs.

How Resourcefulness Shaped My Education—and My Life

When I was growing up, my family struggled financially. There were nights when we didn’t know where our next meal would come from, let alone how we’d pay for school. I didn’t have the option of someone else footing the bill for my education or my dreams. I had to become resourceful. I worked as a janitor, washed cars, and did anything I could to earn money—not just to survive, but to invest in my own growth.

I remember saving up for my first seminar. It wasn’t easy, but because I paid for it myself, I showed up differently. I was hungry to learn, to apply every lesson, and to make the most of every opportunity. That experience taught me that when you have skin in the game, you value the experience so much more. You become invested—not just financially, but emotionally and mentally.

That’s why I believe it’s so important for young people to contribute to their own education. It’s not about making things harder for them—it’s about giving them the gift of ownership, pride, and the confidence that comes from knowing they can create their own future. When you empower your child to be resourceful, you’re not just helping them pay for college—you’re setting them up to thrive in every area of life.

“The secret to living is giving. When you contribute, even to your own future, you build pride and confidence.” —Tony Robbins

Family Wealth & Education Planning Exercise: Creating a Shared Vision

Here’s a practical exercise you can use as a family to open up this important conversation and empower your child to take ownership of their education and financial future.

1. Set aside an evening where everyone can be present—no distractions, just open conversation.
2. Start by having each family member share what education means to them and what they hope to gain from it—not just in terms of a degree, but in life skills, experiences, and growth.
3. Together, list out all the potential costs of college: tuition, books, living expenses, travel, and more. Let your child do the research and present their findings.
4. Brainstorm all possible resources: savings, scholarships, part-time work, financial aid, and creative alternatives like community college or online courses.
5. Ask your child: “How would you feel if you contributed to your own education? What would you learn from that experience?”
6. As a family, create a simple action plan: who will research what, what deadlines you’ll set, and how you’ll check in on progress.

End by celebrating the fact that you’re tackling this as a team—and remind each other that resourcefulness, not just resources, is what creates lasting success.

“Decisions shape destiny. The decision to invest in yourself is the first step to a life of abundance.” —Tony Robbins

Empower Your Child for Life, Not Just College

Remember, the goal isn’t just to pay for college—it’s to raise a resourceful, independent adult who can thrive in any economy. Teach your child to focus on growth, contribution, and smart financial habits. That’s the real education.