Beyond saving for college: Help provide the financial education no one majors in

As students return to campus this fall, many are entering a new phase of financial independence. While families often focus on the cost of higher education, the transition to college creates a valuable opportunity for financial advisors to expand conversations beyond the cost of tuition and address the real-world financial responsibilities students will soon face on their own.

For advisors, these discussions can serve a dual purpose: helping families prepare students for financial responsibility while creating opportunities to strengthen multigenerational relationships and deepen long-term client engagement.

Building relationships across generations at a pivotal time

New conversations about financial responsibility often emerge when students begin making financial decisions independently, creating a natural opportunity for advisors to extend their support beyond education funding.

College planning is frequently one of the first financial milestones that brings multiple generations together. Parents and grandparents may be helping fund educational expenses while students begin establishing the financial habits that will shape their future. By guiding these discussions, advisors can demonstrate value to the entire family and reinforce their position as a trusted advisor during an important life transition.

These interactions also present a strategic opportunity to connect with future decision-makers before significant wealth transfer occurs. Through conversations about financial independence, credit, budgeting, and long-term planning, advisors can begin building familiarity and trust with younger family members in a relevant, authentic way.

As wealth transfer continues to be a major industry focus, building relationships with younger family members before they inherit assets or assume greater financial responsibility can support long-term family engagement and client retention.

Addressing often overlooked planning needs

The transition to college frequently introduces planning considerations that families may not have previously considered. Once students reach adulthood, privacy laws can limit a parent’s ability to access medical information or make financial decisions during an emergency.

Advisors can add value by encouraging families to consult with qualified legal counsel about health care directives, health care powers of attorney, and financial powers of attorney. Raising awareness of these issues helps families prepare for unexpected situations while positioning the advisor as a coordinator of broader planning needs.

Building financial habits that last

Before discussing topics such as credit, budgeting and debt management, advisors can help families establish clear expectations around financial responsibility. As students gain greater fiscal independence, many parents struggle to balance providing support with encouraging accountability. Tara Popernik, CFA®, CFP®, head of wealth planning at LPL Financial, notes, "Parents can offer some assistance while still trying to encourage independence, but establish clear guardrails. Those types of guardrails really encourage financial independence and future positive habits when it comes to money."

Establishing these expectations early can help students develop the foundation for responsible financial decision-making as they begin managing money on their own.

Credit management is one of the most important topics to address. Many students will obtain their first credit card during college, which will provide an opportunity to build credit responsibly. Advisors can encourage discussions around making payments on time, keeping balances low relative to available credit, and avoiding purchases that cannot be comfortably repaid. As even one missed payment can remain on a credit report for years, responsible credit management is an important early lesson.

Debt management is equally important. Small balances can grow quickly when combined with high interest rates, making it critical for students to understand the long-term cost of carrying debt. Helping students develop awareness of spending habits and cash flow can reinforce financial discipline before debt becomes a challenge.

College is also an ideal time to introduce basic budgeting principles. For many students, this is the first time they’re responsible for managing income and expenses without direct parental oversight. Understanding where money comes from, where it’s being spent, and how to distinguish between needs and wants can help students avoid unnecessary financial stress while building confidence in their financial decision-making.

Advisors may also encourage students to begin building an emergency fund, even if contributions are modest. Setting aside a portion of each paycheck can help cover unexpected expenses, such as travel emergencies, medical costs, vehicle repairs, or replacing a laptop, and reduces the likelihood that a financial setback results in burdensome debt.

Another often overlooked topic is identity protection. Young adults are increasingly vulnerable to identity theft and financial fraud, making credit monitoring an important financial habit. Encouraging students to review their credit reports regularly and consider a credit freeze can help protect their financial future and reinforce the importance of safeguarding personal information.

These conversations don’t need to be extensive to make an impact. By helping families introduce these concepts, advisors can provide meaningful, practical value during a pivotal life stage. More importantly, they can help students develop financial habits that will support their independence and long-term financial well-being long after graduation.

A strategic time for multigenerational engagement

For financial advisors, back-to-school season is about far more than college funding discussions. It presents an opportunity to help families prepare students for financial independence while becoming a trusted partner in their long-term financial journey.

By guiding students through early financial decisions and helping them develop sound spending habits and decision-making skills, advisors can cultivate meaningful connections with the next generation of clients.

In today’s increasingly competitive, relationship-driven environment, these conversations can create lasting value well beyond the college years, positioning advisors as trusted partners across generations.

Krista Teegarden is the team lead for the Advanced Planning team at Commonwealth Financial Network.

Commonwealth and LPL Financial are each a registered investment adviser and member of FINRA/SIPC. Commonwealth and LPL Financial are affiliates under control of a common parent company.