Three Reasons to Give the Gift of College Savings

By Teresa Stewart

In the frenzy of the holiday giving season, there’s one unique gift idea you may have overlooked: contributions to a college savings account.  A new innovative crowdfunding capability through Ugift®, makes it easier than ever to ask family and friends to contribute to your Learning Quest® Education Savings Program 529 account.

1. It's Practical (but Much Better than Socks)

Practical gift-giving often gets a bad rap, but children can't break or outgrow a college savings account. A good education lasts a lifetime.

As college costs continue to rise, saving as much as you can before they graduate high school can make a big difference in their financial future. Tuition at public and private colleges has risen an average of 2.2% and 1.9%, respectively, each year over the past 10 years.1

Regular contributions can help keep pace with rising costs and put the benefits of higher education within reach.

2. It's Easy (for You, and Your Family and Friends)

If you're looking for a way to streamline gift ideas for others, the gift of college savings can be a smart option for friends and extended family members. Instead of getting all the latest games or gadgets, you could ask them to consider an account contribution instead.

Gift-Giving Made Simple for Family and Friends

Through the Learning Quest® 529 Education Savings Program  , it’s easier than ever to set up a crowdfunding page specifically for your child’s college journey.

Invite family and friends to a personalized online gifting page where they can give money straight from their bank account to a Learning Quest account. And best of all, there are no fees.

Set Up a Gifting Page

  1. Log in to your Learning Quest 529 account and click on the Ugift® link. 
  2. Set a saving goal for an upcoming occasion: birthday, holiday, graduation or other milestone.
  3. Add a description of your goal, a photo and choose an end date. The page will count down the days left to send a gift for your chosen occasion.

Only someone with the link to your gifting page will be able to see it. As the account owner, you decide who gets the link.

Invite Friends and Family

Once you’ve set up your gifting page, you can share the link through social media or by email. Gift givers can click on Give a Gift to choose an amount and add their name and bank information. You’ll receive a deposit confirmation when the gift is added to the account. Creating a Gift Giver profile is optional, but it will let them give future gifts more quickly, send gifts to multiple recipients, view gift history and set up recurring gifts.

Teresa Stewart
Teresa Stewart

Don't have a dedicated college savings account yet? Learn more about the tax and savings benefits of 529 plan accounts. They're easy to set up and manage. And most have low minimum investments, so you don't have to save a large sum to get started.

3. It's Automatic (Set It, but Don't Forget It)

Committing to an automatic investing plan is a time-tested strategy to grow money (including college savings) over time.

Set up annual gift contributions to a college savings account for holidays, birthdays or other milestones. You may also choose to invest your gift monthly to help smooth out ups and downs in the markets.2 Either way, automatic investing will help you stay on track toward your college savings goals.

Ugift also allows recurring gifts. Frequent gift givers can log in at ugift529.com  to create a profile and set up automatic gift transfers from a bank account.

Grandparents: RMDs Make Great College Contributions, Too!

Starting at age 70½, retirees have a unique income stream that can help families boost education savings: required minimum distributions (RMDs) from retirement accounts.

For those who want to contribute to grandchild's or other student's education, these distributions can be a great resource for funding college accounts. It's also a way to help the next generation understand the importance of saving for long-term goals.

A Gift You Won't Regret

No matter the occasion, college savings contributions are a gift for the future. Find out how annual or monthly gift giving can help college savings grow.

Learn more about available investment options, such as 529 plans, or call us at 1-800-345-2021 to discuss your family's needs.

 

1 Trends in College Pricing 2019  , College Board, October 2019.

2 This strategy, known as dollar cost averaging, does not assure a profit or protect against loss in declining markets. To fully take advantage of dollar cost-averaging, you should be prepared to continue investing at regular intervals, even during economic downturns.

Ugift® is a registered service mark of Ascensus Broker Dealer Services, LLC.

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      Before investing, carefully consider the plan's investment objectives, risks, charges and expenses. This information and more about the plan can be found in the Learning Quest Handbook, available by contacting your financial advisor or American Century Investment Services, Inc., Distributor, at 1-800-579-2203, and should be read carefully before investing. If you are not a Kansas taxpayer, consider before investing whether your or the beneficiary's home state offers a 529 Plan that provides its taxpayers with state tax and other benefits not available through this plan.

      Notice: Accounts established under Learning Quest and their earnings are neither insured nor guaranteed by the State of Kansas, the Kansas State Treasurer or American Century Investments.

      Administered by Kansas State Treasurer Jake LaTurner
      Managed by American Century Investment Management, Inc.
      Distributed by American Century Investment Services, Inc.

      The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.

      You could lose money by investing in a mutual fund, even if through a 529 plan. An investment in a mutual fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.