Giving the Gift of Education this Holiday Season

One of the greatest gifts for a child is money to help fund a college education. College is becoming more expensive while also a necessity for many career paths. You can help your own child, or friends and family by giving the gift of college savings. It is truly the gift that keeps on giving.

One of the best ways to do this is through a 529 plan. These plans make it easy to set up an investment account to help save money for college. One of the biggest benefits of these accounts is that if the money is used for qualified education expenses, the money can be taken out tax-free. This could save thousands of dollars that would otherwise go to taxes if you simply saved the money at the bank. In addition, you have various investment choices that can help that money grow even faster.

Even better, anyone can contribute money to the plan. So now you can tell grandma or grandpa to put the money that was going to go towards a savings bond into the 529, which will help even more.

Learn more about 529 plans:

• Understanding 529 Plans
• A Parent's Guide to 529 College Savings Plans
• Gift Idea for Kids: A 529 Plan Contribution