In our final episode of Nurturing Financial Freedom for 2025, we take a deep dive into the rapidly evolving world of education and what that means for families planning ahead. College isn't what it used to be, and as we head into 2026, we unpack how demographic shifts, cost pressures, and emerging technologies like AI are reshaping higher education—and what families can do to stay ahead of the curve.
Alex explains how college enrollment has been declining steadily since its peak in 2010. While part of that is due to lower birth rates post-2007, we focus on the bigger shift—young people increasingly turning toward trade careers, certifications, and alternative learning paths. Fields like HVAC, welding, and nursing are growing in demand, and students are seeking out stable, well-paying jobs that don’t require a four-year degree.
For those who do choose college, we’re seeing a clear shift in preferred majors. STEM fields like engineering, computer science, and data science are growing, along with healthcare and business, while traditional liberal arts majors are shrinking. Rising costs are a huge part of the conversation, with many families questioning whether a $320,000 undergraduate degree truly delivers a return on investment. This economic pressure has pushed many toward more flexible paths like community college, online programs, or hybrid models that offer practical value without the high price tag.
We also examine how universities themselves are evolving—sometimes in the wrong direction. From luxury dorms to reduced tenure-track faculty, schools are spending more to attract students but aren’t always investing in what really matters: quality education. Alex shares a personal story from his alma mater, Washington University that perfectly illustrates this disconnect.
Next, we turn to the financial side. Ed walks us through how 529 plans remain one of the best tools families can use, even in this uncertain educational landscape. These plans are far more flexible than many realize—they now cover trade schools, certifications, online degrees, and even some K–12 costs. Plus, any leftover funds can be rolled into a Roth IRA, offering tax-free growth and long-term retirement benefits for beneficiaries. The ability to change the plan’s beneficiary and the favorable tax treatment make 529s an incredibly versatile, powerful savings option.
Even if the future of education is less predictable, we agree the cost will still be significant. That’s why saving early and often—while staying flexible—is more important than ever.