Are you crowdfunding your college savings account?

If you’ve heard of GoFundMe or Kickstarter, you’re probably familiar with the idea of crowdfunding. People or businesses can create fundraising campaigns and broadcast their donation requests to the world. In a successful campaign, hundreds, or even thousands of people contribute small amounts of money (which can end up as a big amount!) towards the mission. For example, in 2014 the popular 80’s children’s program “Reading Rainbow” raised over $5 Million for a new learning app!

One thing many people don’t realize is that anyone can contribute to a 529 College Savings account. While these accounts are usually opened by parents or grandparents, anyone can add money to it. This can make reaching larger savings goals more achievable by getting more donors involved.

 In my household, we’ve got three kids, and each has had a 529 college account from birth. We expressed to our families from early on that a gift to their college account is always appreciated. Our kids love getting toys, but we’re at the point where adding to their college account is probably more sensible in the long run. While we automatically save into those accounts monthly, the most meaningful deposits are always those one-time gifts from friends and family.

Between birthdays, graduations and holidays, there’s a lot of expectation in our society to give gifts every year. If giving a loved one a head start in college is important to you, you might want to investigate a 529 College Savings account. Starting an account and letting people know it’s available for gifts can be an incredibly effective way to build towards college savings goals. With higher education costs rising seemingly every year, it’s hard to imagine starting too early or saving too much.

If you already have a 529 account, consider letting family and friends know about it. If you need help starting a college savings account, our company can help. We’re able to help you set them up with no annual commissions or advisory fees.