Even though a 529 college savings plan contribution doesn’t have the same wow factor as compared to a PlayStation 4 or a “Frozen” doll under the tree yet it may be a smarter bet.
“You’re giving something that will have future value,” said Carina Diamond, a certified financial planner and managing director of SS&G Wealth Management in Akron, Ohio. “If we look at our families, everyone already has a lot of ‘stuff.’
In a recent Charles Schwab survey, 53 percent of people said cash is preferred as their top gift choice is to pay off their credit card debt. Also More than three-quarters of teenagers picked cash as their most-wanted gift, according to Ebates.com.
While you are not braving Black Friday crowds or comparing sales, it’s is smart to plan ahead for financial presents. Some states allow for gifts made to a 529 plan, but contributions can take time to process, said Diamon.
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