When it comes to holiday gifts for the children in your life, there are plenty of toys and video games to choose from, but why not consider a gift that will last a lifetime?
Consider the gift of education. Diane Brewer, the executive director at Michigan Education Trust, discussed the best way to set up this valuable gift.
So what exactly is MET? It’s a 529 College Saving Plan for tuition in which you buy college credit hours today, at current prices, for classes your child will take in the future. With college tuition rates constantly on the rise, Brewer says, you can save loads of money down the road because MET will make up the difference in prices.
Anyone can open up an account and you can start with a community college contract, which starts at $125 per credit hour. With the pay-as-you-go plan, anyone can add to the funds for a minimum contribution of $25, making it perfect for birthdays and holidays
To contribute to a child’s fund, all a person needs is the contract number and they can donate to the fund online. If online isn’t your thing, you can also do it the old-fashioned way: Mail them a check with the contract number on the memo line.
Other plan options include a lump sum -- which is a one-time contribution only -- and a monthly contribution option.
As the purchaser, you can claim it as a deduction on your Michigan income taxes, plus, all earnings are tax free when it is used for higher education.
During December, for the holidays, the first 300 new beneficiaries to sign up will receive an extra $100 in their account. To enter, there is a required promo code, which also waives the $25 activation fee.
To learn more, click or tap here.