- Budgeting
- Cash Management
- Consumer and Mortgage Loans
- Debt and Debt Reduction
- Time Value of Money 1: Present and Future Value
- Time Value of Money 2: Inflation, Real Returns, Annuities, and Amortized Loans
- Insurance 1: Basics
- Insurance 2: Life Insurance
- Insurance 3: Health, Long-term Care, and Disability Insurance
- Insurance 4: Auto, Homeowners, and Liability Insurance
- The Home Decision
- The Auto Decision
- Family 1: Money and Marriage
- Family 2: Teaching Children Financial Responsibility
- Family 3: Financing Children’s Education and Missions
- Introduction
- Decide How Education Relates to Your Financial Goals
- Understand the Principles of Financing Education and Missions
- Understand the Priority of Money for Financing Education
- Recognize How to Save for Your Children’s Education
- Recognize How to Save for Your Children’s Missions
- Know How to Reduce the Cost of Education and Apply for Aid
- Summary
- Assignments
- Investments A: Key Lessons of Investing
- Investments B: Key Lessons of Investing
Education IRA
The Education IRA is a type of individual retirement account that allows parents to save money for their children’s secondary education as well as their higher education. Funds in an Education IRA accumulate interest tax-free, and the account creator determines how to invest the funds and how the funds will be spent. Eligible expenses include college tuition, elementary school tuition, secondary school tuition, and the purchase of books and supplies. If the money is withdrawn for expenses that are not related to education, federal taxes will be incurred at the creator’s tax rate and the creator must pay a 10 percent penalty charge.
An Education IRA has a contribution limit of $2,000 per year in 2007, which may be phased out as your income increases beyond specific limits. Funds must be used by the time a child reaches age thirty (but funds can be transferred to other children).
