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How much could you save for college by not buying these top toys?
http://www.savingforcollege.com/articles/how-much-could-you-save-for-college-by-not-buying-these-top-toys-1006
Posted: 2016-12-02
The holiday season is upon us again. Families across the US will brave long lines, or in some cases, artificial 'black markets' on sites like eBay, to grab one of the newest, hottest toys of 2016 for their loved ones. This December scramble is becoming somewhat of a holiday tradition, yet most gift givers know that these presents, while they bring joy and smiles in the moment, are usually only played with for a few months before they're old news.
So the question becomes, is there a better alternative to these 'soon to be in the back of the closet' gifts? The answer these days seems quite obvious. With college costs increasing at nearly double the cost of healthcare over the past 30 years, putting the money into a college savings fund is something that should be on every parent and grandparent's mind this holiday season.
But how much could the price of one toy impact a child's future college costs? Is it really worth doing the 'prudent' thing and putting the money into a 529 college savings plan? Let's take a look at the 25 of the most sought after gifts this holiday season, and how much you could potentially save by making an annual contribution to a 529 plan instead. Keep in mind that you might be able to save even more if you live in one of the 30+ states that offers a tax benefit for 529 plan contributions.
RELATED: The World's Simplest College Calculator
The holiday season is upon us again. Families across the US will brave long lines, or in some cases, artificial 'black markets' on sites like eBay, to grab one of the newest, hottest toys of 2016 for their loved ones. This December scramble is becoming somewhat of a holiday tradition, yet most gift givers know that these presents, while they bring joy and smiles in the moment, are usually only played with for a few months before they're old news.
So the question becomes, is there a better alternative to these 'soon to be in the back of the closet' gifts? The answer these days seems quite obvious. With college costs increasing at nearly double the cost of healthcare over the past 30 years, putting the money into a college savings fund is something that should be on every parent and grandparent's mind this holiday season.
But how much could the price of one toy impact a child's future college costs? Is it really worth doing the 'prudent' thing and putting the money into a 529 college savings plan? Let's take a look at the 25 of the most sought after gifts this holiday season, and how much you could potentially save by making an annual contribution to a 529 plan instead. Keep in mind that you might be able to save even more if you live in one of the 30+ states that offers a tax benefit for 529 plan contributions.
RELATED: The World's Simplest College Calculator
1. Hatchimals Egg (Interactive)
Price: $59.00
Future value of a 529 plan, assuming annual contributions of $59.00 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $1,664.56
- If the child is six years old - $1,114.05
- If the child is 10 years old - $677.99
RELATED: Top 10 direct-sold 529 plans
2. Nerf N-Strike Elite Terrascout Remote Control Drone Blaster
Price: $200.00
Future value of a 529 plan, assuming annual contributions of $200.00 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $5,642.58
- If the child is six years old - $3,776.43
- If the child is 10 years old - $2,298.26
RELATED: 6 winning strategies to cutting the cost of college
3. DreamWorks Trolls 'Hug Time' Poppy
Price: $50.00
Future value of a 529 plan, assuming annual contributions of $50.00 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $1,410.64
- If the child is six years old - $944.11
- If the child is 10 years old - $574.57
RELATED: The 15 lowest-cost 529 plans
4. Sky Viper V2400 HD Streaming Drone With FPV Headset
Price: $130.00
Future value of a 529 plan, assuming annual contributions of $130.00 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $3,667.67
- If the child is six years old - $2,454.68
- If the child is 10 years old - $1,493.87
RELATED: The price of procrastination: 7 reasons to start saving today
5. FurReal Friends Torch 'My Blazin' Dragon'
Price: $69.00
Future value of a 529 plan, assuming annual contributions of $69.00 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $1,946.69
- If the child is six years old - $1,302.87
- If the child is 10 years old - $792.90
RELATED: 5 simple ways to teach a young child about college
6. Furby Connect
Price: $90.00
Future value of a 529 plan, assuming annual contributions of $90.00 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $2,539.16
- If the child is six years old - $1,699.39
- If the child is 10 years old - $1,034.22
RELATED: The magic number for college savings
7. Cozmo the Toy Robot by Anki
Price: $180.00
Future value of a 529 plan, assuming annual contributions of $180.00 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $5,078.32
- If the child is six years old - $3,398.78
- If the child is 10 years old - $2,068.44
RELATED: The truth about scholarships and 529 plans
8. Playstation VR (Virtual Reality) Headset for Sony PS4
Price: $399.00
Future value of a 529 plan, assuming annual contributions of $399.00 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $11,256.94
- If the child is six years old - $7,533.97
- If the child is 10 years old - $4,585.04
RELATED: 7 myths and realities of 529 plans
9. Diamondback Lustre 20" Bike
Price: $269.00
Future value of a 529 plan, assuming annual contributions of $269.00 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $7,589.26
- If the child is six years old - $5,079.30
- If the child is 10 years old - $3,091.16
RELATED: 5 habits of successful college savers
10. Play All Day Elmo
Price: $40.00
Future value of a 529 plan, assuming annual contributions of $40.00 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $1,128.52
- If the child is six years old - $755.29
- If the child is 10 years old - $459.65
RELATED: 6 must-know 529 plan rules
11. Yvolution Y Glider Deluxe Scooter
Price: $60.00
Future value of a 529 plan, assuming annual contributions of $60.00 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $1,692.77
- If the child is six years old - $1,132.93
- If the child is 10 years old - $689.48
RELATED: 5 types of students who benefit from 529 plans
12. iPod Touch 16GB
Price: $190.00
Future value of a 529 plan, assuming annual contributions of $190.00 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $5,360.45
- If the child is six years old - $3,587.61
- If the child is 10 years old - $2,183.35
RELATED: 6 ways you can save for college
13. Step2 Upscale Part Time Kitchen
Price: $120.00
Future value of a 529 plan, assuming annual contributions of $120.00 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $3,385.55
- If the child is six years old - $2,265.86
- If the child is 10 years old - $1,378.96
RELATED: Who can open a 529 plan?
14. Interactive Remote Control R2 D2 from Star Wars
Price: $100.00
Future value of a 529 plan, assuming annual contributions of $100.00 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $2,821.29
- If the child is six years old - $1,888.21
- If the child is 10 years old - $1,149.13
RELATED: Lacrosse or Kumon: Which activities best prepare a young child for college?
15. Asus – Flip 2-in-1 10.1″ Touch-Screen Chromebook
Price: $249.00
Future value of a 529 plan, assuming annual contributions of $249.00 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $7,025.01
- If the child is six years old - $4,701.65
- If the child is 10 years old - $2,861.34
RELATED: 4 ways to get your kids involved with saving for college
16. Marvel Remote Control Hulk Smash Vehicle
Price: $70.00
Future value of a 529 plan, assuming annual contributions of $70.00 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $1,974.90
- If the child is six years old - $1,321.75
- If the child is 10 years old - $804.39
RELATED: Should I pay for private elementary school or save for college?
17. Magformers Magnetic Building Construction Set
Price: $79.00
Future value of a 529 plan, assuming annual contributions of $79.00 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $2,228.82
- If the child is six years old - $1,491.69
- If the child is 10 years old - $907.81
RELATED: Top 10 financial mistakes millennial parents make
18. Power Wheels Wild Thing 12 Volt Battery
Price: $329.00
Future value of a 529 plan, assuming annual contributions of $329.00 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $9,282.04
- If the child is six years old - $6,212.22
- If the child is 10 years old - $3,780.64
RELATED: Saving for college? These 6 mistakes can cost you
19. Imaginarium Metro Line Train Table
Price: $159.00
Future value of a 529 plan, assuming annual contributions of $159.00 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $4,485.85
- If the child is six years old - $3,002.26
- If the child is 10 years old - $1,827.12
RELATED: College Savings Timeline: New Beginnings
20. Xbox One S
Price: $299.99
Future value of a 529 plan, assuming annual contributions of $299.00 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $8,463.58
- If the child is six years old - $5,664.45
- If the child is 10 years old - $3,447.28
RELATED: 5 questions to ask yourself when choosing a college savings strategy
21. LEGO Star Wars Resistance X-Wing Fighter
Price: $74.66
Future value of a 529 plan, assuming annual contributions of $74.66 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $2,106.37
- If the child is six years old - $1,409.74
- If the child is 10 years old - $857.94
RELATED: How much can parents really save for college by giving up Starbucks?
22. Powerup FPV
Price: $199.99
Future value of a 529 plan, assuming annual contributions of $199.00 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $5,642.29
- If the child is six years old - $3,776.24
- If the child is 10 years old - $2,298.15
RELATED: How much is your state's 529 state tax deduction really worth?
23. Hot Wheels AI
Price: $94.00
Future value of a 529 plan, assuming annual contributions of $94.00 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $2,652.01
- If the child is six years old - $1,774.92
- If the child is 10 years old - $1,080.18
RELATED: 10 things we love most about 529 plans
24. Nintendo Mario Kart 8 Quadcopter Drone
Price: $129.00
Future value of a 529 plan, assuming annual contributions of $129.00 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $3,639.46
- If the child is six years old - $2,453.80
- If the child is 10 years old - $1,482.38
RELATED: Why you should teach your kids about money
25. PS4 Pro
Price: $399.99
Future value of a 529 plan, assuming annual contributions of $399.00 until the beneficiary is 18 years old, and a 6% annual investment return:
- If the child is two years old - $11,284.87
- If the child is six years old - $7,552.67
- If the child is 10 years old - $4,596.41
RELATED: 4 ways families are tackling high college costs
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