Education Planning & College Savings Plans | First Command

Education Planning for Success

College Savings Plans For Military Families

College Education

Investing in the future

Our First Command Financial Advisors help you prepare for education costs with a personalized plan and specially designed financial solutions that align with your scholarly aspirations.

Investing for education expenses consistently ranks as a high priority for many American families. And it should. Despite the substantial cost of college, statistics continue to show that the long-term value of a degree makes it an investment that may pay off in the long term. College graduates are more likely to be employed, to make substantially higher incomes, and to receive employer-provided healthcare and retirement benefits.¹

Education Trends

Planning: By the numbers.

When to Invest

Put time on your side.

There’s no shortcut when it comes to investing for college — but you can help significantly impact the outcome by beginning to invest early. Assuming the same amount of money earns the same rate of return on a monthly basis, parents who start investing for a college education when their children are born may accumulate twice as much by the beginning of their child’s freshman year as parents who put off investing until their child’s sixth birthday.

Hypothetical illustration: $200 monthly contribution, assuming a constant 8% annual return compounded monthly.

chart showing the increase in investments when starting earlier

This is a hypothetical example for illustrative purposes only. It does not represent the performance of any specific investment or strategy. Actual investment returns will fluctuate, may be higher or lower than shown, and may result in loss of principal. Fees, taxes, inflation, and market volatility are not reflected unless otherwise stated.

Smart Investing

Maximize your resources.

Through thoughtful planning and disciplined investing, you can make the most of your financial contributions to an education plan. Your First Command Financial Advisor can help you choose a tax-advantaged investment option that meets your needs.

529 Plans

Legally known as qualified tuition plans but commonly known as 529 plans, these programs allow tax-deferred earnings and tax-free distributions for qualified education expenses.

Coverdell Education Savings Accounts (ESA)

ESAs allow for contributions of up to $2,000 per year until a child’s 18th birthday, tax-deferred earnings, and tax-free distributions for qualified elementary, high school, or post-secondary expenses.

Post 9/11 GI Bill

The Post-9/11 GI Bill is a very generous education benefit for qualified service members and veterans, and a special provision of the program offers the opportunity to share it with a spouse or child. The ability to transfer GI Bill benefits to family members makes it a powerful tool for college planning.

It Starts with You

Talk to your Financial Advisor.

There’s no better time to begin planning for tomorrow’s education expenses than today. In addition to helping you set goals and determine which investment options best meet your needs, your First Command Financial Advisor can help you:

Allocate your investment dollars.
Understand how your investments may impact eligibility for financial aid.
Prioritize your investment dollars when time or assets are limited.
Factor scholarships, grants and loans into your education funding plan.
Build a comprehensive plan that takes all of your financial objectives into account.