Why Grandparents Should Open a ScholarShare 529 College Savings Account
This post is part of a campaign sponsored by Scholarshare, California’s 529 College Savings Plan. It’s the third in a series of four posts during College Savings Month. Check back each week to read the rest!
This one is for all of the grandparents out there wondering what to get their grandchildren for their next birthday. You could get a video game that they will play for a few weeks and forget about or a building set with teeny tiny pieces that you’ll likely step on when you come to visit. Or you could get them a gift that will have a lasting impact on their lives – a ScholarShare 529 College Savings plan.
September is College Savings Month and what better time to get your grandchild something much more meaningful than a gift card. I get it. You don’t want them to hate you. Their eyes won’t light up when you show them pictures of the college they could attend in 12 years. But when that time comes and they realize they are able to go to college, it will be worth it.
Need more information? Here are a few quick facts about ScholarShare’s 529 Plan.
- Anyone can open a ScholarShare account – it doesn’t have to be the child’s parents – as long as the account holder has a social security number and as little as $25. Here’s more information about opening an account.
- You control how the money is invested and how it is spent. You can choose professionally managed investment portfolios with lower or higher risk.
- If your grandchild doesn’t use the money, it doesn’t go away. Say your grandchild decides to hold off on college or doesn’t go at all. You can still use the money for your ongoing education or you can transfer the money to another grandchild.
- It won’t negatively impact your taxes (unless you take the money out for something other than higher education expenses). According to ScholarShare, “there’s no federal gift tax on contributions up to $14,000 per year for single filers and $28,000 for married filers.”
- If your grandchild has an account, you can gift into their account whenever you’d like.
If you’re thinking about opening a ScholarShare account, this is a good time. We’ve taken the College Savings Pledge and we invite you to take it with us. If you click over to ScholarShare and take the College Savings Pledge you’ll be entered for a chance to win $500 in College Savings. Five winners are chosen each week in September.
Check out the other posts in the series:
Yvonne Condes is the Editor and co-Founder of MomsLA.com. MomsLA, LLC co-Founders Yvonne Condes and Sarah Auerswald, and their immediate family members, are not eligible to win prizes in the Scholarshare 529 sweepstakes. This post is part of a sponsored campaign. It’s the third in a series. Check back each week this month to read more!