Don’t LetMoney Get in the Way Of Your Grandchild’s Education
College expenses aren’t what they used to be. What used to be affordable to any student with a part-time summer job now can take years to pay off. If your grandkids want to go to college, the cost of education should not be a barrier to their future. Luckily there are ways that you can help ease that financial burden. Invest in a 529 savings plan. There are no limits on age, income, or monetary contributions attached to this college savings account, and contributions are tax-deductible in some states. Just like a Roth IRA, the earnings
grow over time and can be used tax-free for qualifying expenses, like tuition and room and board. There are a few downsides, however. Funds from a grandparent’s 529 savings plan are considered student income and could hurt your student’s eligibility for financial aid. If you choose to fund through a parent’s 529 savings plan, which doesn’t count as student income, you lose control over the funds you contribute. Pay their tuition. Not everybody has $20,000 just lying around, but if you do, using it to pay for your grandchild’s tuition isn’t a bad way to spend it. Normally, annual financial gifts that are exempt from the federal gift tax can’t exceed $15,000, but payments toward someone’s tuition, for any amount, are not taxed. Keep in mind, however, that the money can only go toward tuition, not toward other college expenses like room and board or textbooks. Help them find opportunities to save. Even if you don’t have thousands of dollars to give, you can still help your grandkids look for other opportunities to save. There are thousands of available scholarships, grants, and programs to help students pay for college, and helping them look online and in your community can go a long way. College could be your grandchild’s first stop on the path to achieving their dreams. You can be a part of that journey by making sure money doesn’t get in the way of that. website for specific plans about the donations, and confirm the charity exists through Give.org. Follow the Money Making a monetary donation is one of the easiest ways to help others this holiday season, but, before you put your cash toward a faux cause, consider how you’re asked to pay. The BBB recommends donors avoid transactions that are impossible to trace or get your money back. These include wire transfers, payments to third parties, and prepaid cards. Instead, hand your money directly to an organization via a well-known, secure method. Give Responsibly Don’t give up if you find a sham charity! First, report it to law enforcement. Then, find a verified charity that does the same work as the false organization. The fake puppy rescue that emailed you may not be real, but animal shelters and local rescues are. That organization promising to help children get their next meal may be a sham, but local food shelters, community meals through churches, and school lunch programs do exist. You can always find an alternate —and safer —choice. Do a little digging in your own community and avoid a scam, so your money helps the people you want to help.
Avoid Getting Scammed When You Give Back This Holiday Season
‘Tis the season of giving, and perhaps no one is as excited about the increased spirit of generosity than thieves. As you help others this holiday season, heed these warnings from the Better Business Bureau (BBB) to prevent con artists from scamming you out of your money. Discern Reality vs. Fiction Thieves have no limit on what they’ll do to steal, and setting up fake charities is not beyond their“ethics.” It’s not uncommon for fake charity organizations to
ask for donations from kind- hearted citizens who just want to help. These“groups”will often start online fundraising campaigns and generate shares on social media. Before you are swept up in the emotion of giving, verify that the group is serious. The BBB suggests you review the organization’s
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