Parents and Grandparents Giving the Gift of Higher Education

This holiday, do you want a gift that will really help you? Consider asking your parents and grandparents to open or contribute to a 529 savings account on your behalf. A 529 savings account is a state-sponsored account that allows contributions to grow tax-free. Depending on the state you live in, your parents and grandparents could get a tax deduction for adding to the account. (However, Kentucky isn’t one of the states that give a tax deduction.) The savings in the 529 account will grow tax-free until your family withdraws the money later to help pay for qualifying educational expenses such as tuition and textbooks. The more money your family puts into the account while you are in high school, the more money there will be to accrue interest before college.

Grandparents can be especially helpful when saving for college. If your grandparents want to open a 529 account for you instead of getting you gifts, then their account would not have much impact on your family's qualification for financial aid. And remember, it is helpful to have your family withdraw from the account only AFTER you file your financial aid applications during your last year of post-secondary education. Money used to pay for the first year and subsequent years of post-secondary education count as your (the student’s) income, which could reduce or lower the amount of financial aid you will receive.

Getting your family involved in your college saving plan comes with an added benefit. Students who know that their family intends for them to attend college have a much greater likelihood of enrolling. If your family were to add to a 529 account for the holidays, then you will feel more comfortable pursuing college knowing plans are in place. So consider proposing this unique gift idea to your family. You would probably like a college degree a lot more than new clothes they might pick out for you.

References:

College Savings Plans Network (CSPN). (n.d.) Retrieved from http://www.collegesavings.org/index.aspx

Couch, C. (2012). Tax-savvy ways to tap your 529 plan for college. Fox Business. Retrieved from http://www.foxbusiness.com/personal-finance/2012/08/14/tax-savvy-ways-to-tap-your-52-plan-for-college/.

Video Post: Holiday Shopping Safety

 This video focuses on ways consumer can be safe while shopping in stores this holiday season. As the officers mention, crime increases after Thanksgiving because thieves anticipate shoppers being careless. 

Some of the advice offered may be familiar to you, such as avoid carrying large sums of cash. However, much of this video is likely new information. Did you know that thieves have been targeting large SUVs for the third-row seats? 

While shopping, no matter the time of the year, be careful to conceal the valuables in your cars and always lock the doors and trunk. Be mindful when you have your wallet out, and be sure to promptly put it away. Keep your guard up and stay aware of your surroundings. By taking a few precautions, you can avoid having your money or purchases stolen. 

READERS, what do you think?

What safety advice do you have for those shopping in busy stores?

References
ABC News Channel 7. (2012). Tips to have a safe holiday shopping season. [Video file]. Retrieved from http://abclocal.go.com/kabc/video?id=8442025.

How to Shop Safely

Unfortunately for those looking forward to snapping up great deals this Black Friday, consumer fraud and theft never take a holiday. Each year, crime tends to increase throughout the nation as Christmas and Chanukah approach. This is because people are more likely to be carrying large sums of cash or packages of expense gifts.  An important part of being a smart consumer is knowing how to protect yourself from theft no matter the date on the calendar. Luckily, the National Crime Prevention Council—think McGruff, the crime dog—provides these tips for shopping safely:

            While shopping in stores:

•  Do not take out your cash/credit card/ checkbook until the cashier asks for payment. It is very easy to drop your wallet in a long line.
•  Watch out for "shoulder surfing." This is when people peek over your shoulder to get your credit card number, bank account number, driver’s license number, etc. (sometimes snapping a photo with a camera phone). Cover your card number at all times, and do not give it to the cashier face up.
• Keep your wallet in your front pants pocket or your purse as close to you as possible with the zipper shut. Pickpockets use crowds to their advantage and swipe wallets in long lines.

      In parking lots:

• Do not walk to your car with your arms full. Thieves target people who are weighed down by packages.
• Do not leave bags and gifts visible through the car windows. Take your new items home or put them in a locked trunk. The same goes for cellphones and GPS units.

            While shopping online:

• Update your anti-virus, anti-spam, and anti-spyware software. This keeps you protected from the latest threats.
• Consider shopping with a pre-paid gift card. This way your regular card number cannot be stolen by a hacker.
• Only purchase items on secure Web sites. Look for a padlock symbol at the bottom of the screen or "https" in the URL address. The “s” means secure.
•  Do not buy from bargain or auction Web sites that are unfamiliar to you.
•  Do not give your passwords to anyone. If an e-mail claiming to represent your bank asks for account information and/or asks you to click on a link, they are likely a scammer. Only provide banking information if you initiated a call to your bank.
• Save all your receipts and online order confirmations. Compare them to your bank or credit card statements so you can tell if you have been overcharged.

           Just in case:

•  Set up a meeting place when shopping with family in a large or crowded store.
•  If shopping with a younger sibling, tell him/her to find a mall employee or security guard if they get lost.
•  Make a handwritten list with the phone numbers of all your banks and credit card companies. List your card numbers and expiration dates. Always keep the list at home in a secure place, like a family safe or locked file cabinet. This way you can quickly cancel all your cards should your wallet be stolen.

These tips can be helpful all year long. Be vigilant as you shop and keep your money and personal items close. By being prepared and knowing what to watch out for, you and your family can feel more secure and can better enjoy your holiday. 

READERS, what do you think?

What are other ways people try to steal in crowded stores?

References:

National Crime Prevention Council. (2011). Safety first holiday safety tips for last minute shoppers. Retrieved from http://www.ncpc.org/about/news/safety-first-holiday-safety-tips-for-last-minute-shoppers.