Education Planning
Investing for education expenses consistently ranks as a high priority for many American families. As well it should: According to the U.S. Census Bureau, people with a bachelor’s degree earn significantly more on average than those with only a high school diploma — in 2006, an average of $58,866 annually for the college graduate vs. $33,419 for the high school graduate.[1] Over a lifetime, the gap in earning potential between the two can be more than $1 million!
While education costs continue to rise, the good news is that a number of tax-advantaged education-investment options are available. But no single option is the right answer for all investors, so familiarizing yourself with their various features is essential.
A First Command Financial Advisor can help.
Pre-college education expenses
While most people think of college as the goal for education investing, parents are increasingly finding that their children’s first education expenses are occurring years earlier. Private schools, books, supplies, computers, extracurricular activities and tutoring all may require advance planning. Your First Command Financial Advisor can help you choose an appropriate tax-advantaged investment option that meets your unique education-funding needs.
A variety of tax-advantaged investments can help you fund education expenses from elementary school through college.
College expenses
Although higher education is expensive, the good news, according to CollegeBoard.com, is that more financial aid is available now than ever before — more than $130 billion! And though it’s not unusual for annual tuition and fees at some private colleges to run $30,000 or more, most schools are more affordable than you might think. In fact, 56 percent of students attending four-year schools pay less than $9,000 per year for tuition and fees.[2]
Your First Command Financial Advisor can help you explore the availability of scholarships, grants and loans, show you the benefits of education-planning investments such as Section 529 Plans and Education Savings Accounts, explain how money you set aside for college impacts the availability of financial aid, and counsel you on how to prioritize your investing dollars if time is short or assets are limited.
To learn more, contact a trusted First Command Financial Advisor today.
- Annual Social and Economic Supplement, Current Population Survey, U.S. Census Bureau, 2007
- “2007-08 College Costs.” www.collegeboard.com/parents/csearch/know-the-options/21385.html, accessed 5/20/08
