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Wednesday, June 19, 2024

How to Plan for Education of Your Child as Federal Employee?

It is important to plan for education of your children at a very early stage. In case your children want to enter into college and you are a senior citizen then still you have employment rights as per federal laws, so that you can pay their fees.

Though many states often discriminate based on the age of employees but as per supreme court decision of March 2005, there should be no discrimination because of age and also tuition assistance for federal employees can be provided to children of senior citizens too.

As we all know that usually college education can be expensive and if due to age discrimination any federal employee loses his job then it can hamper the education of their children.

Therefore, it is essential that you must start planning for education of your children right from the time your children are born. Following are few ways you can ensure that education of your children will not be negatively impacted.

  • Start saving for children education

The best thing that you can do from your end is that you must start saving money for your children, as soon as they are born so that there should not be any shortage of funds when the education expense for your child begins to increase.

  • Save as often as possible

When your children will enter college then his or her education expenses are going to be much higher than school level education and hence you need to save more aggressively than and as often as possible and also take advantage of compound interest.

  • You also must be aware of education cost

You must also be aware about actual college education costs, so that you can make suitable plan for arranging funds. You must also be aware about inflations and due to which the education cost also may increase.

So, you need to make your target for saving money.

  • Look for any other options

Besides your own saving there are few other methods too available to finance education of your children. Following are few multiple tax-deferred as well as tax-deductible methods available that you must consider:

  • UTMA/UGMA accounts
  • Education savings account
  • Prepaid tuition plans
  • Roth IRA
  • 529 plans
  • Check college funding guide   

You can also sign up online for college funding guide, so that you can remain fully updated with various ways of funding the education of your children under different circumstances.

This guide can be helpful to you in a number of ways.