How to Get Help Saving for College

April 2, 2020

You’ve heard it a million times: College costs are skyrocketing. You need to start saving early.

It can be hard to sock away money and put a college savings plan into action when it comes to something that’s years away. But it’s time to get realistic about how much you need for your child’s education, the best ways to save, and how to avoid debt down the road.

College Costs Are Rising…But How Much?

Even considering the price differences between two- and four-year, public and private options, the costs can get overwhelming.

What Are The Options for Paying for College?

Most families pay for college through a combination of current paychecks, savings, scholarships or grants, and particularly, loans. More than 20 percent of funding for the 2018-19 school year came from parent and student loans, piling on debt for families and young adults, according to a study on How America Pays for College by Sallie Mae and Ipsos.

Putting Birthday Gifts to Better Use

Crowdfunding has gained popularity for a variety of expenses. Parents are recognizing that small amounts from lots of people have the potential to grow immensely over time. However, only 20% of parents ask loved ones contribute to their child’s 529 plan instead of giving a material gift, according to a survey from College Savings Foundation.

Family members and friends may already be gifting money for holidays, birthdays and other milestones. And when you add up these gifts, you’ve got another tool to help you save for college.

Plus, as a bonus for the gift givers, they may also qualify for a state income tax deduction or credit for 529 plan contributions. Most states allow anyone who contributes to a 529 plan to claim the state income tax deduction or credit, while some only offer this benefit to the 529 plan account owner.

The availability of tax or other state benefits (such as financial aid, scholarship funds and protection from creditors) may be conditioned on meeting certain requirements, such as residency, purpose for or timing of distributions, or other factors.

What would it look like in the future if you replaced a portion of your usual gift amount with contributions toward college savings? And what if your friends and family did the same?

An Easy Way to Crowdfund Your 529 Account

It’s easy to set up a crowdfunding page specifically for your child’s college journey through the Learning Quest^® 529 Education Savings Program.

You can invite family and friends to a personalized online gifting page where they can contribute money straight from their bank account to a Learning Quest account. And, there are no fees for this gifting service.

Most people can make fairly large contributions to a child’s 529 plan without incurring gift taxes. Gifts of up to $15,000 per beneficiary will qualify for the annual gift tax exclusion.

Set Up a Gifting Page

Log in to your Learning Quest 529 account and click on the Ugift^® link. Don’t have a Learning Quest account? Click here to learn more about the benefits of 529 plans.
Set a saving goal for an upcoming occasion: birthday, holiday, graduation or other milestones.
Add a description of your goal, a photo and choose an end date. The page will count down the days left to send a gift for your chosen occasion.
Only someone with the link to your gifting page will be able to see it. As the account owner, you decide who gets the link.

Invite Friends and Family

Once you’ve set up your gifting page, you can share the link through social media or by email.
Gift givers can click on Give a Gift to choose an amount and add their name and bank information. You’ll receive a deposit confirmation when the gift is added to the account.
Creating a Gift Giver profile is optional, but it will let them give future gifts more quickly, send gifts to multiple recipients, view gift history and set up recurring gifts.

Small Gifts Add Up to Big Dreams

The online gifting page is also a way to engage your child in the college process. Together, you can watch your 529 savings potentially grow over time, and your child will see how regular additions—no matter how big or small—can help turn college dreams into reality.

Next time your loved one asks what to get your child for a birthday, holiday, or just because, giving the gift of college has never been easier. Every dollar you save now, is a dollar less you or your children will need to borrow down the road. Instead of another toy or an outfit that your kids will quickly outgrow, ask friends and family members for an investment in their future.

Before investing, carefully consider the plan's investment objectives, risks, charges and expenses. This information and more about the plan can be found in the Learning Quest Handbook, available by contacting your financial advisor or American Century Investment Services, Inc., Distributor, at 1-800-579-2203, and should be read carefully before investing. If you are not a Kansas taxpayer, consider before investing whether the beneficiary's or your home state offers a 529 Plan that provides its taxpayers with state tax and other benefits not available through this plan. This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation. Notice: Accounts established under Learning Quest and their earnings are neither insured nor guaranteed by the state of Kansas, the Kansas State Treasurer or American Century. Administered by the Kansas State Treasurer. Managed by American Century Investment Management, Inc.