Parents are getting ready to spend an average of
$400 for each of their children this holiday season-and are considering
replacing toys with college savings contributions, according to a new
study.
Although children may not be happy to hear this,
financial advisors should embrace the trend as leverage for encouraging
college saving, according to Fidelity Investments, a seller of 529
plans and sponsor of the study.
"More than a third of flows to 529 plans typically
come in the fourth quarter giving season, so there is a natural
opportunity for advisors to help clients make a connection between
holiday gifts and college savings," says Martha Willis, executive vice
president of Fidelity Investments Institutional Services Company, which
manages the company's 529 plan offerings.
The study is based on answers from 310 parents nationwide with household incomes of $75,000 or more.
Among the findings is that 90% of respondents
consider a contribution toward college savings a more valuable gift
than toys or games, according to the "Toys and Tuition" survey.
One-third of the parents said, looking back, they
would replace previous gifts with college savings contributions.