Give the Gift of Education this Holiday Season

Photo by Plush Design Studio on Unsplash

In this article, we will discuss how to make contributing to a child's education savings account an enjoyable gift.

College is expensive.

According to The College Board (link opens in new tab), the cost of attending a public, out of state university is now over $40,000 per year. While cost increases have slowed in recent years, four years of school can cost over $160,000, which is no small amount of cash. 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that is typically funded with after tax contributions, and if used for qualified education related withdrawals, can be withdrawn without any taxes owed on the withdrawal, meaning, tax free growth.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).

Education funding? What a boring gift!

My own family members have said things like, education funding, how boring! 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. (The blog mentions RESPs, which are Canadian, but don’t worry - the ideas still apply.) 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).