Gifts and more gifts or college fund?

Hey, readers, do your kids really need more gadgets, toys and clothes this holiday season? What about a college education instead?

I want to do a story on how young parents can ask family members -- i.e. grandparents -- to invest in the gift of higher education, meaning contributing to a college fund, rather than spending a small fortune at the mall on items kids will outgrow or get tired of.

Have you done that? What did the grandparents say? Or are you thinking about it? It can be a touch subject. I'd love to hear how you handled it.

Please share your thoughts ASAP. Thanks!

Comments

[John Gugle]

I think I speak for all parents when I saw that our kids really do not need more toys. We've implemented a strict 3 gift limit from Santa because Jesus received 3 gifts from the wise men. This helps to limit the expectation inflation that occurs each year. We have also encouraged both sets of grandparents to give to the kids' 529 plans in place of toys. I speak from experience as a Certified Financial Planner that grandparents enjoy giving the gift of education. They want their grandkids to have a top notch education and they understand from experience that college costs can cripple a couple's finances. It's true that it can be a touchy subject given that grandparents can be squeezed by the cost of caring for their own parents and preparing for their own retirement. Approach it as an alternative to giving toys or knick-knacks. Most 529 plans will accept additional investments of $50 or more, so it is within most gift budgets.

[Andrea]

We have always done a portion of Christmas towards college and now I am very glad. With two in college it made what seemed unlikey actual reality. We decided ten years ago that a portion of the money we would use for vacations, bettter housing or gifts would go towards college. Both are good above average students that did not have scholarships in their future, and we as parents are glad we can say go and improve your future!

[Susan Murphy]

Hi Amy,
From the time our daughter was born, my husband and I asked his parents (who are divorced) to contribute to the 529 rather than simply giving her more "stuff." They responded very favorably, although both still insist on giving a little something for her to open on Christmas (or her birthday).

It was a tougher sell with my parents in Kentucky. My mom said, "Buying her toys and clothes is pleasurable for me, so you sock money away and let me have my fun!" But ever since the toy recalls, my mom hasn't wanted to buy much of anything for her except books. She already told us that this year, she'll be making a contribution to the college fund instead! (Hooray!)

At any rate, we make a regular monthly contributions to the 529, but it's amazing how the holiday infusions add up.

[Jenifer D]

My daughter's birthday is Dec 16th so we've asked all who attended her first birthday party to contribute to her college fund...we got about $90 and quite a bit of gifts! There are toys everywhere in my house!

She will get those same gifts next year :-)