Education is important. Generally, as the amount of education increases, the amount of lifetime earnings increases as well. Education is costly, but the cost of ignorance is even higher. There are many different ways to finance an education; reduce the cost of education as much as possible by utilizing available investment vehicles and financial assets.
There are four important principles of financing education and missions.  They are teach your children to be financially responsible, help your children to contribute to their own (and other family member’s) mission and education, have a plan that is consistent with your personal goals and budget and follow it, and start early in saving for your children’s education and missions.

Understand the priority of money for financing education. Following the “priority of money” refers to the process of determining the least expensive sources of money for education and taking advantages of these sources first. These priorities are: 1. Free money.  These are funds from scholarships, grants and tax savings. 2. Personal and Family money.  This includes funds from personal savings and/or investments and help from parents, grandparents, or relatives. And  3. Loans.  This includes subsidized loans, unsubsidized loans, private loans and credit cards.

There are a number of financial vehicles and financial assets that can help you save for your children’s education. Each of these different types of accounts has advantages and disadvantages, so it is important that you understand these vehicles and accounts. This section discussed custodial accounts, Series EE and Series I bonds, Education IRAs, and 529 plans (both the 529 prepaid tuition plan and the 529 savings plan).  The 529 Savings Plan is the most recommended investment vehicle discussed.

There are fewer financial vehicles that can help you save for your children’s missions. This section discussed custodial accounts and tax-efficient and wise investing.

There are several ways that you can reduce the cost of education and apply for financial aid. Begin the process early, fill out the FAFSA form, talk with financial aid office representatives at your school, and look on the Web for other types of aid available.

Now that you have completed this section, ask yourself the following questions:

1. Have you decided how education relates to your financial goals?
2. Do you understand the priorities of money for financing school?
3. Do you know how to reduce the cost of education and apply for aid?
4. Do you recognize how to save for your children’s education?

If you can answer yes to each of these questions, you are ready to move on to the next section!