A Gift That Keeps Giving

Editor’s note: This article was sponsored by the Washington College Savings Plans (WA529). 

Thanksgiving is just around the corner, and for many families that means thinking about holiday traditions. Beyond making grandma’s treasured stuffing recipe or sitting down to watch the big game, helping kids create a wish list is a favorite tradition for many families. 

When kids are little, it’s fun to see the way their wish lists reflect their personalities, hobbies, interests and whatever this year’s trendiest (often hard-to-get) toys are. Over time, their simple requests for art supplies, dolls and trinkets they’d find in the dollar bins turn into big-ticket items that usually revolve around the latest tech they just have to have. 

As a parent, drilling down to what they really need — plus what fits your family’s budget — can be challenging. It’s hard trying to whittle down the list and strike a balance. 

A quick internet search proves there are dozens of different gift-giving strategies parents rely on when it comes to holiday gifting. Many rely on the simple “4 rule” guideline — four gifts for each kid that fall into these categories: something they want, something they need, something to wear and something to read. Creative variations of this tried-and-true rule include adding to or substituting something fun to do, something for the family or a special surprise. 

Yet, no matter what the online experts advise, or what must-have gifts your kids have included on their own wish lists, including something that gives back over the years and grows with them for the holidays, like an education savings account, is a worthwhile option. Sure, it’s not as epic as the newest smartphone or an American Girl doll, but it’s a gift they can always use, even if they don’t realize it yet. Plus, it has the potential to go a lot further than a gift card, or an envelope with a crisp bill tucked inside. Parents can even encourage family and friends to join in this annual gifting tradition to grow their child’s savings over time. 

Getting started 

With as little as $25, families can start a Washington Education Savings Plan 529 (WA529) account. There are two state-administered 529 plans through WA529: 

• WA529 Invest is a 529 investment plan that allows families to choose from multiple investment options. Your savings can grow depending on market performance.
• GET is a 529 prepaid tuition plan that allows families to purchase tuition units at a set price today, and use them in the future to avoid long-term tuition inflation and stock market risk. 

Once the account is set up, anyone can contribute any amount at any time for any occasion and have a positive, lasting impact on your child’s future. Not only does setting up a college savings account let your child know you support their dreams, but it also reduces their future reliance on student loans and models responsible investing. So much better than that flash-in-the-pan toy that’s flying off shelves this year. 

Plan benefits and options 

Like all good gifts, opening a 529 savings account offers flexibility for future college or career training choices. They can be used at nearly any college, university, trade school or technical school in the U.S. and worldwide. They can even be used for many apprenticeships and some professional credentialing programs. Schools are eligible if they accept federal financial aid, and apprenticeships are eligible if they are registered with the U.S. Department of Labor. 

The earnings grow tax-free and remain tax-free when used for qualified educational expenses that include a wide range of costs such as tuition, fees, room and board, books, computers, supplies and costs associated with a registered apprenticeship. 

Compare the plans online to learn more about the benefits of saving with GET and WA529 Invest. Both plans feature easy-to-use, secure online gifting platforms for sharing with family and friends. 

Creative ways to wrap your gift 

Because all good gifts should be wrapped, here are a few creative ways to package up a college savings account investment or similar option: 

• Wrap it in any-sized box or create nesting boxes.
• Roll it up like a diploma with a ribbon around it.
• Hide it inside another gift (like a book).
• Seal it in an envelope and place it on the fireplace mantle, in a stocking, or hide it in the tree. 

It takes a village to raise a child, and the holiday season is the perfect time to actively build a plan for your child’s future education. It’s pretty great when your children graduate from high school and start using their education savings to pursue their dreams. Even better, it’s amazing to know that your children completed their higher education path with minimal student loan debt, partly due to your family’s generous gift traditions.