Morse’s Money Matters

The best way to fund a child’s college education account such as a 529 Plan is to set up regular contributions, annually or monthly, so that the account continues to grow. However, in tougher economic times, sometimes these regular contributions to a savings plan are one of the first places that people chose to cut back.

One great way we have been able to keep our children’s accounts growing is by using gifting opportunities from family and friends. Grandparents in particular tend to have a set amount of money that they like to spend on each grandchild for birthdays and holiday but many times this amount far exceeds the cost for a toy. We have asked our family (and friends sometimes) to instead give a toy or book and the remainder amount of money they can contribute to the child’s 529 Plans. This also works great when the child meets milestones in their education (an outstanding report card) or extra-curricular activities (advancement in a Karate belt or a team winning a big game) and loved ones want to recognize the accomplishment.

We make it a point to show our children their account statements and to let them know when contributions are being made by others. I know for me personally, it made me feel good to know that my own college education was partially funded by similar gifts from my Great Uncle Eddie who consistently contributed to my account. The gift of my education is something that I will never grow tired of or break but I can’t say the same for the masses of toys my children currently possess.