(November 26, 2024) - Traditions are often sentimental, full of fun, and build lasting memories with family and friends. One of my favorite holiday traditions occurs on Thanksgiving Day. I ask my kids to sit down and create a holiday wish list - complete with colorful holiday art decorating the margins. It started when my kids were little and decorated their wish list for Santa with holiday-themed pictures. I loved it so much that I asked them to keep up with the tradition of hand-written wish lists with hand-drawn art as they got older. To my surprise, even though they are in their early 20s, they still humor me with this annual request.
Every child is different. Their wish lists reflect a combination of their personality, hobbies, interests, and what is trending for their age group that year. If your kids are anything like mine, their wish lists range from big-ticket items to small-ticket items and everything in between. There are so many wonderful gift options to choose from; even with a list, it can be a challenging task.
There are quite a few popular approaches to holiday gifting – a quick internet search will present you with dozens of articles to read about different gift-giving strategies. Many strategies start with a simple “4 rule” guideline: something they want, something they need, something to wear, and something to read. Other variations include something fun to do, something for the family, and or a special surprise. Another great idea is a gift they may not realize they need/want - a college savings account.
No matter what your child puts on their wish list or what approach you take to holiday gifting - adding a “cash” gift earmarked for future education is a meaningful option. You can even encourage family and friends to join in this annual gifting tradition to grow their savings even more. It is easy to get started, with Washington College Savings Plans (WA529), you can open a 529 account with as little as $25 and then anyone can contribute any amount at any time.
A gift contribution to a child’s 529 savings account is rewarding
- It has a positive impact on their future.
- It tells children you support their dreams.
- It models valuable financial habits.
- It reduces future reliance on student loans.
- It is a gift that truly lasts a lifetime.
Benefits of 529 Plans
- Flexible college or career training choices. 529 savings can be used at nearly any college or university, trade or technical school, and many apprenticeships and study abroad 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.
- Earnings grow tax-free and remain tax-free when used for qualified educational expenses.
- Qualified expenses include a wide range of college and career training costs. 529 savings can be used for tuition, fees, room and board, books, computers, supplies, and costs associated with a registered apprenticeship.
Explore Washington’s 529 Plan Options
Washington offers two state-administered 529 plans through Washington College Savings Plans (WA529):
- DreamAhead is a 529 Investment Plan that allows you to choose from multiple investment options. Your savings can grow depending on market performance.
- GET (Guaranteed Education Tuition) is a 529 Prepaid Tuition Plan that allows you 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.
Visit WA529's website to learn more about the benefits of saving with GET and DreamAhead. Compare plans, explore options, open a new account, or learn how to make a gift contribution to an existing account at 529.wa.gov/give-a-gift. Both GET and DreamAhead have easy-to-use, secure online gifting platforms to share with family and friends.
Ideas for wrapping a GET or DreamAhead contribution
- Customize a gift certificate from our website.
- 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 gift-giving time is the perfect time to actively build their future. It’s pretty great when your children graduate from high school and begin using their education savings to pursue their dreams. Even better, it is amazing knowing your children completed their higher education path with minimal student loan debt, partly due to your family’s gifting traditions. Education savings truly is a rewarding gift for everyone involved. However you wrap it, a contribution to your children’s 529 savings plan for holidays, birthdays, and other milestone events is always meaningful.
Visit 529.wa.gov to get started today.
By Jenn Dyck, Marketing & Communications Coordinator, Washington College Savings Plans (WA529)