Still Don’t Have an Idea on What to Give Your Grandkids? Help Them Secure Their Future with These Financial Presents
Grandparents have earned the reputation of spoiling their grandkids. A fight with mom and dad? Children immediately go to their grandpas and grandmas for support and comfort. They always have the best advice and food to make things seem better.
They are also great gift-givers because many would choose to give out cash to let the youngsters buy whatever they want. However, grandparents could give out a present that will be essential for the future of the little ones.
Who says you can’t help your grandchildren who are in college already? They may not be a fan of the usual cookies you used to bake when they were kids but that doesn’t mean you can’t spoil them anymore. At this time when student debt is one of the main stress-inducing problems of millennials nowadays, you can help them unload some of their burdens by helping them pay their tuition.
Education is a must and you are investing in their future when you choose to aid them to pay for school fees. However, monetary gifts above $15,000 will be faced with a gift tax, so to avoid being taxed, give the cash directly to the school, John Pak, a financial planner, shared.
College Savings Plan
Or better yet, if they are still years away from entering college, why don’t you help them start saving up for their education? A 529 plan will be a big leg up once they need it – this is a government-sponsored program that is opened through a kid’s name and where anyone can contribute to it. If the child does not use it, it can be transferred to another beneficiary.
There are different contribution limits for each state but as mentioned, there is an allowed $15,000 gift that will not be taxed. But that doesn’t mean it is mandatory to give them the amount for a bright future as any help would be beneficial in the future, John said.
Kids should enjoy their time playing toys and games but it is never too early to introduce the concept of saving. If you’re thinking about the long run, a savings account is a great way to help the children have available funds that can grow in the years to come.
You’ll never know that this will be a life-saver when they need it the most in the future. If you have no idea what to get your grandchildren, start saving up every year on the account.
Times have changed and it’s now harder to own a house after a person finished schooling. For one, the rising cost of living has caused young adults to live paycheck to paycheck, which makes it seem impossible to purchase their own home.
Then the threat of a low starting salary is also among them. As a result, many millennials have opted to rent apartments or bunkhouses that are within their means. Chances are, most of them are residing in expensive markets, which are near their offices, so if you want to help financially, chipping in on their down payment may be the boost they are waiting for.
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