Would You Want Me to Give Your Child a 529 Plan Gift Card?
I mean, if we were related or something.
I became an auntie for the first time this year, which means I am now responsible for providing what I consider the two primary Aunt Gifts:
- BOOKS seriously all the books
- Baby Drum Sets and other noisemakers
(JUST KIDDING I will of course ask my sister before bringing any Mr. Microphones or whatever the contemporary equivalent is into the house, I am not a monster. Not kidding about the books, though.)
Since I’ve been thinking about investments lately, I’ve also wondered if I should talk to my sister about potentially contributing to any 529 plans. For some people, this might be an awkward conversation—I mean, nobody really wants to open with “so, how are you planning to pay for your kid’s college,” right? (What emoji do you put after that text? Probably the dollar sign with wings on it.)
Luckily, there’s now a product that allows you to contribute to a child’s 529 plan without ever having to have a conversation with their parents!
Want to Help Pay for a Child’s College? Grab a Gift Card
Parents are often reluctant to solicit gifts for their children’s college funds, even though they might prefer a gift of cash to another stuffed animal. But friends and relatives will soon have an option to contribute to a 529 saving account without being asked.
This product comes from GiftofCollege.com—and you already know that this is going to be one of those retailers where the name is literally “Gift of College Dot Com,” like that isn’t outdated or anything—and they’re selling 529 plan gift cards which will soon appear at retailers like Toys “R” Us. This sounds like a great gift, maybe? The perfect stocking stuffer?
Whether consumers find the gift cards convenient remains to be seen. After the card is delivered to the parents, there’s another step or two before the cash ends up in the 529 account. The recipients must create a profile on Giftofcollege.com to redeem the card and direct the money to their 529 plan. And if the parents haven’t started a 529 plan, they must do so first to receive the money.
I wonder what happens to the money if the parents don’t do that, or if they put it off for six months because it’s never a good time to sit down and research how a 529 plan works, and you don’t really know if this is going to be a five-minute task or a two-hour task, and is this the kind of thing where you need to meet with a financial advisor first?
And then you start searching for a reputable resource on 529 plans, hello U.S. Securities and Exchange Commission website, and it’s all “you need to choose between a prepaid tuition plan and a college savings plan,” and you’re like “nope, I need to watch Netflix and do the dishes.”
SEC.gov | Introduction to 529 Plans
Meanwhile, that Gift of College Dot Com gift card with $50 or whatever on it is just sitting there, first it’s on the pile of mail that you need to deal with that weekend, then it gets moved into the skinny drawer at the center of your desk so it can hang out with a bunch of batteries and inkpens, and eventually you start asking yourself whether it’s even worth making an account at a website you’ve never heard of to redeem fifty bucks.
So, a question for Billfolder parents: would you want an auntie or grandparent to give your child a 529 plan gift card from Gift of College Dot Com? Also, would you want them to at least text you about the idea before they went to Toys “R” Us and bought one?
Support The Billfold
The Billfold continues to exist thanks to support from our readers. Help us continue to do our work by making a monthly pledge on Patreon or a one-time-only contribution through PayPal.
Comments