Next time you are invited to a baby shower, reconsider traditional gifts that benefit the parent short-term. A trust-based savings plan is a thoughtful gift that shows that you care about the family's future, which can benefit them for a lifetime.
- An all-in-one savings plan is a great baby shower gift, since it benefits both the parent and child long-term.
- Make sure the account is easily accessible, like a Kiss Trust.
- Choosing an account with many investment options gives you the freedom to grow your funds beyond the initial deposit amount.
Gifting Saving Plans To New Parents
Think Beyond Immediate Essentials for Baby Shower Gifts
New parents are often inundated with clothes, blankets, toys, and other items that newborns quickly outgrow. Instead, consider giving parents a gift that will grow with their newborn and help serve his or her needs later in life.
A savings account for a newborn is one of the most thoughtful gifts that family and friends can give, and an all-in-one savings plan is a smart decision for the gift buyer. Children born today can expect to pay over $200,000 for a four-year college degree, so not all children can afford college when the time comes. To best prepare for a child’s future decisions, savings accounts need the flexibility to remain relevant as the child matures. These easy-to-use and affordable plans are flexible, and can change with the shifting needs of every family.
Millennials Are Not Afraid to Ask
Members of the millennial generation are starting families. And these millennials who find themselves saddled with significant student debt are hoping to present their children with alternatives. This is why they are not shy about asking family and friends for money to save for their children. In fact, bridal registries often include accounts for new homes and other starter items for new families. Baby registries are beginning to see these same requests, moving away from traditional gifts. 82% of respondents said that they were in favor of having a college fund on their baby registry based on a poll taken by an independent media and technology company.
Benefits Of Gifting Saving Plans
The gift of a savings account is a thoughtful offer from anyone, but it is important that it is done correctly. Investors should choose an account that offers a wide variety of investment options, such as mutual funds, EFTs, stocks, bonds, and more – unlike most 529s. Some 529 plans limit the grantor to one change per year, so choosing a plan that has flexibility additionally benefits the child. This flexibility is critical for when you need to change strategies more than once to adapt to a drastically changing economy.
With increasing interest in donations to college funds, it is important to choose a savings plan with easy accessibility. Research indicates that over 70% of grandparents are willing to make donations to grandchildren’s savings plans. Family members can gift up to $14,000 each year without paying gift tax. New parents should look for accounts with easy online gifting options to make donations as simple as possible for family.
You can give the gift of a lifetime by gifting a Kiss Trust to a new parent. Start today, and we will give you 60% off the standard price of a Kiss Trust.