Babies sure are cute and it is tempting to purchase a whole bunch of adorable bunnies, shoes, and rattles for them. At the end of the day they have favorites and too much clutter isn’t really all that necessary. What is truly necessary is that every time a friend or family member feels like buying them a gift, they can purchase College Savings Bonds.
There are a couple of options for purchasing College Savings Bonds. Individuals who want to prepare for their child’s education can buy Savings Bonds directly from the US Treasury. If a savings bond is purchased and cashed in to pay for educational expenses, such as tuition at a qualifying college, the Federal taxes can be waived. The Federal Government issues savings bonds and there are no state or local taxes to worry about.
Many states also offer College Savings Bonds, perfect to start banking and saving for your little one’s big educational future. For example, the state of Illinois issues College Savings Bonds that are tax-exempt, zero-coupon bond. The goal of these bonds is to provide individual investors a financial opportunity to help pay for their child’s education.
Any one over the age of 18 can purchase College Savings Bonds. If they are being purchased for a minor, a child under 18 can get gift deliveries in a minor linked account directly through the US Treasury through TreasuryDirect.
One of the greatest gifts parents can provide their children is the means to afford a college education. College Savings Bonds are one way to help finance this dream. Purchasing them now and letting them grow to their fullest maturity can build a significant nest egg built specifically with this goal in mind. So next time you go to the local mall and start getting sucked into that cute little outfit in the window, take a step back. Take that extra cash, purchase a College Savings Bond and know that your child will be getting financially closer to a college degree.