College Savings: The Perfect Gift is a Click Away, MEFA Advises

The holiday-giving season presents parents with the perfect opportunity to nudge family and friends toward contributing to a child’s college savings account rather than giving a material gift.

In less time than it takes to bake a batch of cookies, parents can create a customized College Gifting page and share it with family and friends. The suggestion will likely be embraced by gift givers, because a college savings contribution is always the right size, won’t break within minutes of opening, and is a great last-minute gift idea.

It also helps parents reach their college savings goals faster, making it a great gift for the entire family. And, with time and earnings, small deposits may turn into sizeable savings.

There are different ways to contribute, such as adding funds to a dedicated college savings account like the U.Fund 529 College Investing Plan^® or the U.Plan Prepaid Tuition Program, or toward an ABLE account, such as the Attainable^® Savings Plan.

In a recent survey, 45% of parents said they would ask for contributions to a 529 education plan as gifts for their children for a holiday or major event, according to the College Savings Foundation. For families with a U.Fund 529 College Investing Plan account, customized College Gifting pages make contributing to a child’s education as easy as online shopping or donating to a favorite charity.

Families saving with the U.Fund 529 College Investing Plan or the U.Plan Prepaid Tuition Program have an added benefit: savings allocated to their accounts by December 31^st may qualify for a 2023 Massachusetts state tax deduction.

And if your child was born or adopted within the past year, and is a Massachusetts resident, they may be eligible to receive a $50 deposit into a U.Fund 529 College Investing Plan through the BabySteps program.

If you are interested in learning more about how to get started helping a child save for the future, visit mefa.org/gifting.

MEFA is a state authority, not reliant on state or federal appropriations, established under Massachusetts General Laws, Chapter 15C. MEFA's mission, since its founding in 1982, has been to help Massachusetts students and families access and afford higher education and reach financial goals through education programs, tax-advantaged savings plans, low-cost loans, and expert guidance. All of MEFA's work aligns with the ever-present goal to support the independence, growth, and success of Massachusetts students and families. Visit mefa.org to learn more or follow MEFA on Twitter @mefatweets, Facebook at mefaMA, LinkedIn, and Instagram.

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