I read a little story in today's Washington Post that got me thinking about future Christmas and birthday gifts for our children.
It was about a new online program that allows family and friends to take money they would give for gifts and put it in a 529 plan that would save money for college. Although it's only available in a few states right now, they hope to have it available for everyone in the near future.
Parents can set up a fund and invite people to invest in her future instead of buying her a toy and can donate as little as $15 to the fund.
According to the Post, the "state-sponsored 529 plans are the best way to save for college. Not only does your money grow tax-deferred, but distributions escape taxes altogether if they're used for qualified educational expenses."
Pat and I were both the first people in our immediate families to get college degrees (although we chose the lowly-paying profession of journalism - but that is another story!).
We're hoping our children will make their way to college down the road and what better way to help pay for this than saving a little here and there.
Savannah has lots of toys and I'm sure she'll get plenty more... but we're planning on starting a 529 plan (and also one for little J.P. when he arrives) that will give people another gift option.