In this article, we will discuss how to make contributing to a child’s education savings account an enjoyable gift.
College is expensive now, and it’s getting ever more costly.
According to The College Board (link opens in new tab), in 10 years the projected cost of a 4 year public college degree is expected to be over $142,000, while a 4 year private college degree is projected to cost over $324,000. Will the important children in your life have the funding they need for college?
There’s a lot to love about giving the gift of education
For that special child in your life, consider giving the gift of education this holiday season – or during any gift-giving moment like birthdays. How about making a contribution to an Education Savings Account for that important child in your life?
An Education Savings Account is a type of account that is typically funded with after tax contributions, and if used for qualified education related withdrawals, can be withdrawn without any taxes owed on the withdrawal, meaning, tax free growth. There are different types of accounts like a Coverdell Education Savings Account and a 529 Account, and not all accounts work for every situation. Consult a financial professional before opening an account. Read more about the details here (link opens in new tab) and here (link opens in new tab).
The kid won’t like this gift, and besides I want something they can open and play with!
I came across this blog article with some really creative ways to make a contribution to an education savings account more fun to give as a gift. I love the idea of a science kit/art supplies (or whatever your child’s special interest is) along with a note about your contribution helping them be able to study their special interest later. Pairing one of these ideas with the gift of education seems like the best of both worlds.
Read the ideas here (link opens in new tab).