Monday, April 29, 2013

A to Z Challenge: Y Is For Youth

 Is For Youth and Their Future

Today is April 29 or 4/29, so it seems an appropriate day to talk about college 429 savings plans.

These are my grandchildren.

They are five and seven years old.  Megan will head to college in 2124 and Hunter two years later.  It is scarey to think about what college will cost by then.

When Megan was born I promised her mother that I would not shower her with gifts of toys and useless trinkets.  Instead, I fund a 429 Oregon College Savings Plan  for each of the girls.  (Well, I do, now and then, spoil them with gifts also.)  I opened the accounts when Hunter was born and a deposit is automatically deducted from my savings account every month.  In Oregon deposits to a 429 account are tax deductible on our state return up to $4,345. a year for joint returns.  Interest that the money generates is tax free if used for qualified higher education expenses.  When I first opened the accounts only $1200 a year was deductible, so that's what I've been depositing every year.  I checked the Oregon Savings Plan site and saw that amount has been increased, so I'll  probably increase my deposits.

I don't make a lot of money...heck I'm retired on a fixed income, but we're frugal and have no debt.  We live within our means.  We can afford to put a little aside each month for the future of our grandchildren.  So that's what we do.

I don't kid myself that we are saving enough to pay fully for their college, but every little bit will help,  and we take advantage of the tax savings to help us fund this. Year after year the deposits and the interest add up. 

Take time today to explore the 429 plans that are available in your state and others for the future of someone you love.  They'll thank you for it.


  1. That is a great idea. What got me is your comment about gifts of toys and useless trinkets. Gosh my grandkids have mounds of plastic.
    When I think of the amount that could have instead been contributed to a college fund, I cringe.
    Food for future thought.

  2. I have those plans for my grandchildren and besides losing quite a bit of money in 09, I find that the ones I have make little money. I stopped contributing to them and instead, buy them savings bonds now. As you said, with the cost of higher education increasing at about the same rate as medical costs, my contributions may only pay for books but at least it will be something.

  3. Since I don't have any grandkids, I am using my savings right now, on myself. My annuities are refigured every May 1st and I'm hoping this year I might actually get close to what I had coming in before the crash. That's a wonderful thing you do for your grands, and I would do the same if I had any.

  4. Good job, #1 Nana. Every little bit does help.

  5. This is a wonderful idea... plus, kids are way too overindulged with gifts that won't be nearly as useful as this will. You are a good, practical grandmother!

  6. What a good use for the letter Y! I used this plan to help finance my two kids college tuition. Helped a bit, and I'd encourage people to use them like you have. But they're not the answer to the ridiculously increasing cost of college tuition.

  7. Great post and what a wonderful gift you are giving your grandchildren!

  8. We have five kids and several grandkids, we started giving bonds out for gifts a long time ago. The bonds are payable to both the grandkid and the parent, but we hang on them for safe keeping. Not that we don't trust them...

  9. Your gift is a great one! An investment in helping them follow their dreams! They are lucky to have you.

    -Cristyl @


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