As grandparents, your contribution to your grandchildren’s education can make a significant difference to the level and quality of education they receive.
Over the past decade, study shows that grandparents are more invested in accumulating funds to help the younger generation in their families opt for quality education and a successful career. If you are planning to set up accounts and contribute to your grandchild’s education then you can make some smart choices. Following are 5 ways in which you can help your grandchild save for college.
- Be Private About Your Affairs:
- This is one of the smartest decisions you can take to secure funds for your grandchildren. In a recent survey, grandparents set up 529 investment plans without the knowledge of their grandchildren. For the most part, they encourage their grandchildren to apply for scholarships and then use these funds when the time is right. You can inform the parents regarding these saving plans to ease their financial burden.
- Maintain Separate Accounts:
- Financial advisor, David Stolz emphasizes the need to set up separate plans for each of your grandchildren. This will help you save a significant amount or get donations through fundraising options for each one of them. 529 plans are easily transferable and allocating funds from one of your grandchildren is possible in case one does not attend college. This is also very useful if one of your grandchildren gets a full scholarship to college and can transfer their funds to another one so that they are able to attend a better quality institute.
- Title Of These Accounts:
- The funds you are saving should always be in your own name. This allows you to control how these funds are handled and keep a check on how much donations have been accumulated through crowdfunding. This also allows you make use of these funds for your own needs in case you have no other savings in case of medical emergencies, which if one of your grandchildren gets a scholarship. Of course, there will be penalties and deductions but you will ultimately be able to withdraw funds.
- Set Up A Donation Fundraising Account:
- If you cannot bear the complete responsibility of providing your grandchildren with the needed finances then this is a route you can take. In fact, even if you are financially sound, funding several accounts and plans is not easy. Setting up an account with www.thegiftofeducation.com and linking it directly to a 529 plan is a valid means of obtaining external financial help. These accounts can be set up even before your grandchild is born. You can distribute the link to your family, friends and even post it on social media platforms if you like.
- Convey Your Expectations:
- It is always wise to save and prepare for the future. Your expectations should be clear when it comes to your grandchildren’s’ education. Your belief in them can prompt them to perform even better in their academic endeavors. Besides this, you can always encourage them to save some funds for when they go to college.