View Full Version : Grandparent gift for a teenager?


psimon
Every year since my daughter was born, my parents have given us savings bonds to put towards her college funding. Some are I bonds, some are EE. Some are in our name, some are in hers.

She is now 15. The question came up again as to how to make this years "gift". Given she is 15, a savings bond seems kind of useless, but then so does a 529 plan. So what is left? What vehicle should grandparents use to fund a teenagers college education?

Thanks.....

clydewolf
Psimon,

Terrific problem to have!

When you asked, "What Vehicle.....", I thoght, how about a Miata?

Seriously, realize the gift does not need to be used in the first years of college, it can be delayed until the last years of education.

The bonds are good, because they can be used for any purpose.
Yes, there is a tax advantage on using them for education.

Does your daughter work? Does she have some earned income?
How about contributing to a ROTH IRA? Here the contributions could be used for education or any purpose at any time, without penalty or tax due. Just take the contributions.

Just some thoughts.