A lot of people swear by their grandma’s secret chocolate chip cookie recipe – flour, butter, sugar, chocolate chips, and love – those ingredients combined somehow make the best cookies on the planet. That coupled with birthday cards and holidays at grandma’s and grandpa’s create some fantastic memories. In all, grandparents seem to be a constant fountain of gifts, hugs, kisses and love.
Apart from birthday gifts and desserts, grandparents endow their knowledge and wisdom. Many grandparents play a vital role in their grandchildren’s lives – whether that’s providing unconditional love or helping alleviate the financial burden placed on working households – and many know the value of attaining a college education and the financial cost that comes with it.
According to a recent Fidelity study, 72% of grandparents think it’s important to help contribute to their grandchild’s college education, while a little over 50% are currently contributing or have plans to do so.
As the cost of attending a four-year public or private university rises, many grandparents want to help their grandchildren in graduating from college as debt free as possible. We at U-Nest cheer them on and want to give some tips on how best to help their future grad. We recommend investing in a 529 Plan, one that gives you peace of mind for you grandchildren’s future.
A 529 Plan can be opened up by a grandparent, parent or legal guardian of the beneficiary that will one day receive the funds for college. The money deposited into the fund will grow tax-free and is not taxed as long as it is spent on education. We at U-Nest have created the perfect tool to help you achieve this noble goal. We offer the unique ability to create a college savings account per grandchild that can be managed in the palm of your hand. If, in the event that a beneficiary chooses not to go to college or suffers a life changing incident, the account owners have a few options on what to do with the money in the account. First, they can earmark the funds for some future use for that child, such as gradschool. The second is to assign a new beneficiary in the family such as a sibling or future grandchild. Finally, the third option is to withdraw the funds, however, the withdraw may be subject to penalty taxes.
To learn more about 529 plans, check out our blog here. To jump start your grandchild’s college savings, head on over to our info page at www.u-nest.com.