Education Planning

National Guard Family Program
Soldier with child riding piggyback Introduction to Personal Finance

An Overview for State Family Program Directors, Wing Family Program Coordinators, and Families.



Evaluating Your Situation

Budgeting & Debt Management

Goals & Plans

Insurance & Disability Planning

Investment Planning

Education Planning

Retirement Planning

Estate Planning


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Montgomery GI Bill



Planning for Your Child’s Education



Personal Investing


Prepaid Tuition Plans




College Options through Life Insurance


Educational Tax Credits


Learning Check


6.1.1 Personal Investing for College Funds

No matter what the child’s age, strategies are available to help you

come up with the necessary funds. For young children, start putting

money away regularly now, investing in higher-potential-growth securities

and mutual funds as you would for other long-term goals, such as retirement.

As your income increases, try to increase the amount you’re investing.

When a child reaches high school age, you’ll probably want to begin

moving college investments into lesser-risk investments. At this point,

if you own appreciated assets that you intend to sell to meet college

expenses, consider giving them to the child, and letting the child sell

them. The advantage? Potentially more after-tax money to meet expenses.

If you are eligible, you may want to consider using an Education IRA

to help you save for your children or grandchildren’s higher education.

The Education IRA lets you contribute toward a child’s future education

expenses until the child turns age 18. Your contributions and the account

earnings generally can be withdrawn from the IRA tax free to pay qualifying

education expenses of the child.

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