How To Gift Wrap A College Education

Friday, March 1, 2013

by Keith Bernhardt (NAPSA}—Every year—whether aroundtheholidays,birthdays, grad- uations or other events—parents, grandparents, aunts and uncles want to get the perfect gift for the children in their lives. To help, here’s a gift idea that can be far more valuable to their future than toys and games: moneyfor their college education. Therising cost of college means families need to discuss and im- plement savings goals and strate- gies early. One way is by opening and contributing to a dedicated college savings account, such as a 529 plan. These plans are taxadvantaged accounts designed specifically to help families save forcollege. Contributing to a college savings fund is easy to do and can havea big effect down the road—it's a that can last a lifetime: the of education. Monetarygifts can add up over time and makea difference in the age—from newbornsto those get- years to come. In fact, 19 percent of parents name and manage how the savings are used for higher education lege savings and 65 percent expect to get monetary gifts specifically Families with children of any ting ready to head to campus— can open a 529 accountin a child’s expenses such as tuition, room and board, books, and other quali- fied fees and supplies at accredited institutions. According to a recent Fidelity study, 33 percent. of U.S. families saving for college are investing in a 529 account, up from 18 percent in 2008. However, research also shows that the typical American family is on track to cover just a third ofits college savings goal. have asked friends and family to contribute to their children’s col- from grandparents. For more about 529 college sav- ings plans, opening and contributing to an account and other savings strategies, visit www.Fidelity. com/college and go.fidelity.com/ givetograndkids. Mr. Bernhardt is vice president of college planning at Fidelity Investments, one of the world’s largest providers of finan- cial services. Investing involves rish including the rish ofloss. Before investing, consider the 829 plan's investment objectives, risks, charges and expenses. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917. 673676.1.0. 2013 FMR LLC

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