By Marissa Rowe, Executive Director, Indiana Education Savings Authority
December 10, 2024
As a holiday baby (Dec. 28), I tend to pay close attention to holiday gifting. This started as early as I can remember, when my parents made sure they wrapped my birthday gift in something other than holiday paper. Laugh all you want, summer babies. The struggle is real for those of us who couldn’t have birthday parties at the park. Because it’s winter.
All bitterness aside, there are several realities for giving (and not just receiving) gifts during the holiday season. In no particular order:
- How do you make your gift stand out?
- Gifts should be personal and show that you care; and
- You’re all tapped out and the budget is zero dollars.
A gift of or to a 529 education savings plan is the way to go this holiday season and will address the realities you face as a giver of the perfect gift. First, your gift will be unique and will stand out from the crowd. While more families than ever are saving in 529s, most gift-givers prefer to give a traditional gift. By gifting to a 529, you’re setting yourself apart and helping the family in a very tangible way with their education investments.
Secondly, it doesn’t get more personal or thoughtful than a 529 gift. You’re showing that you believe in the child’s dreams as well as their financial well-being. Every dollar you gift is one less they will have to borrow and pay back with interest. Reducing the need for student loans is a gift both the parents and child will appreciate.
In reality, money may be tight, and this holiday season will be all hugs, handshakes, and high-fives for gifts. That is perfectly fine. What you can do is set a reminder in your phone to make that gift contribution in the summer when funds are available…à la Christmas in July.
How do you give a gift to a 529? Simply ask the owner/parent/grandparent how their account receives gifts and follow those instructions. It’s no different than asking what the kids want for Christmas. Happy gifting!
About the author:
Marissa Rowe is executive director of the Indiana Education Savings Authority, which administers the Indiana529 savings program with more than $7.5 billion in assets under management in three plans. A proud first-generation college student, Marissa received her B.A. in Mass Communication from the University of North Carolina at Asheville and her M.A. in Philanthropic Studies from the Indiana University Lilly Family School of Philanthropy. She paid off her student loans in 2020 and has 529 plans for her nieces and granddaughter.