For most people, 2009 has been a difficult year financially. Like many parents, you may have had to decrease or delay the investments you make in your childrens' college savings accounts. This holiday season, put saving for college back on your list—instead of buying another extra Xbox game or a pricey Barbie set, consider some of these college savings gift ideas:
- Make a contribution into your child's college savings account: Whether you have a 529 plan, UGMA / UTMA Account, Coverdell, or another savings account, consider redirecting a part of your gifting budget into your child's college fund. And if you haven't started saving, now may be the time. There's still room for giving your child new toys, clothes, and books, but putting some of that gift money into a college fund can be a great option as well. Not only does a college degree stay in style longer than a hot holiday toy (remember the Furby?), but it's a better value.
Note: if you're contributing to a Coverdell account, make sure you're aware of the Coverdell sunset date. - Ask friends and family to contribute (or help them out yourself!). Picking a gift is always stressful—do they want it? Do they need it? Should they have it? Do they already have it?—So it's smart to save your friends and family the effort. Suggesting that they contribute to your child's college savings account is a great way to simplify their holiday season. It's especially easy if you use a 529 plan: they can contribute online, or use a gift coupon that can be sent in along with a check.
- Ask Grandma and Grandpa for college savings help. Grandparents love getting gifts for their grandkids—but picking the right present means more than keeping tabs on the latest toy trends. A college savings-related gift is the perfect way for a grandparent to provide a holiday gift that will support the aspirations of their grandchildren. These contributions can also have some estate planning benefits. When considering the tax advantages, grandparents should consult their tax advisor for information on their particular situation.
The sticker price of college is high, and based on recent trends it is expected to keep on increasing. But savvy parents can use effective savings strategies, useful tax incentives, and lucrative scholarships to help defray some of that cost. This holiday season, consider the gift of college savings—and help your child keep college within reach.
Investments in 529 college savings plans are neither FDIC insured nor guaranteed and may lose value. Please note the plan's disclosure document includes details such as investment objectives, risks, charges and expenses, and other information that you should read and consider carefully before investing. You can obtain a copy of the plan document from each 529 plan sponsor.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.
Two World Financial Center, 225 Liberty Street, New York, NY 10281-1008