Transforming the
Gift-giving Game
Article by Tony Durkan, Fidelity Investments
BUSINESS CENTS
(BPT) - In a world where toy trends seem to change faster than a child can unwrap a gift, parents, guardians and gift-givers are constantly on the lookout for the perfect present that will both excite and enrich a child's life. According to Fidelity Investments'® 2023 Gifting Study, a surprising revelation has emerged: a significant majority of parents are not only open to but prefer contributions to their child's college fund over traditional holiday gifts.
The study, which surveyed a diverse group of parents and guardians across the country, found that a staggering 79% of respondents would welcome contributions to their child's college savings account in lieu of the usual array of toys and gadgets. Even more compelling, 2 in 3 would even prefer this forward-thinking approach to gift-giving. This sheds light on a growing awareness among parents about the long-term
benefits of investing in their child's education from an early age.
Gift-giving for kids has traditionally revolved around the latest toys, games and electronic devices. However, the rising cost of education has prompted a shift in parental priorities. Many parents are recognizing the importance of building a financial foundation for their child's future, and what better way to do that than by contributing to a 529 college savings account?
Tony Durkan, vice president, head of 529 relationship management at Fidelity Investments, emphasizes the developmental benefits behind these trends. "Children often receive so much in the way of material possessions, but contributing to their education sends a powerful message about the value of long-term goals and planning for the future. It instills a sense of responsibility and demonstrates that education is a
BUSINESS CENTS