Crowd Funding: A New Way to Save for College

These days it may very well take a crowd to send a child to college. That’s the idea behind some new websites that help parents solicit college fund contributions from family members and friends through email and social media.

Following the lead of disaster relief, venture capital, and other crowd funding initiatives, websites like GradSave.com and College Registry by Fipath serve as gift registries for college savings. The sites let you set up a profile for your child and share it with friends and family on social media sites, with links so they can easily make contributions. Grandparents and others can gift your child’s college savings account on Birthdays, holidays, or any time at all. You can also send shower, birthday, or graduation invitations by email and include links to the registry.[1]

Once contributions are received, you can transfer them to your child’s 529 plan or other savings account. Registering your child on these sites is free, but the sites typically charge contributors a service fee, plus a percentage if the contribution is over a certain dollar amount. [2]

A college education is a gift that lasts a lifetime. The registries plug themselves as a convenient (and potentially less awkward) way to lobby family and friends for college money instead of toys, video games, or other gifts that may soon be forgotten.

Donna Parshall writes articles for Allied Cash Advance about frugal living. Allied Cash Advance is a responsible cash advance and payday loans lender.

[1] Gobel, Reyna. “3 Ways to Ask for Contributions to 529 College Savings Plans.” U.S. News & World Report.Web. 13 Aug. 2012. http://www.usnews.com/education/best-colleges/paying-for-college/articles/2012/08/13/3-ways-to-ask-for-contributions-to-529-college-savings-plans

[2] Ensign, Rachel Louise. “’Crowdfunding’ College Costs.” The Wall Street Journal.Web. 19 Oct. 2012. http://online.wsj.com/article/SB10000872396390444657804578048461063769132.html


Live*Laugh*Love said...

Thanks for the tips. My husbands side of the family actually opened up a banking account for our son for college

Shannon Ro said...

This is a great idea, my parents contribute to my son's college fund on his birthday every year. Every little bit helps

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