During the holiday season, I find that the conversation with Idaho parents and grandparents gravitates to the desire of finding gifts that provide lasting value and meaning in the lives of their children or grandchildren. My response is almost always to encourage taking that first and important step toward investing in the educational futures of their loved ones.

As executive director of IDeal, Idaho’s 529 College Savings program, I’ve seen first-hand how saving early — in increments big or small — can make the cost of higher education less daunting and the prospect of completing a college or career and technical education degree more probable. In fact, taking advantage of this program can help turn the idea of completing education after high school from a dream into reality.

We’ve all seen the headlines about rising costs for tuition, room and board, books and student fees. Many stories now suggest that the rising cost of college is translating into paralyzing debt for graduates, leading many to forgo buying homes as college loan payments consume a sizable percentage of their monthly paychecks.

A 2019 report by The Institute for College Access and Success found that about 65 percent of college seniors graduating from public and private nonprofit colleges in 2018 left with student loan debt payments owing an average of $29,200, up 2 percent from the 2017 graduating class.

Here in Idaho, 62 percent of 2018 graduates left school with an average debt of $27,600, ranking the Gem State 31st in the nation for average student loan debt, according to the same report.

It’s hard to imagine this trend reversing any time soon as we have seen an overall decline in state funding for higher education over the past several decades. The Idaho State Board of Education recently explained in their Dec. 12 press release how these reductions have put more pressure on institutions to rely on tuition and fees, which ultimately translates to higher costs for Idaho families.

This is a trend not unique to Idaho. In fact, The Institute for College Access and Success reported that the share of per-student funding coming from tuition was at 47 percent across all public colleges in 2016 and more than 60 percent at bachelor’s degree granting schools. According to the Idaho State Board of Education, 40 years ago, tuition accounted for 7 percent of college and university funding at Idaho schools, compared to today’s 47 percent.

Idaho policymakers, business leaders and educators understand how essential an educated and trained workforce is to the future health of our state, and there is widespread consensus around the need to ensure that more of our young people pursue and secure a post-secondary degree or certificate. And while there’s no doubt education costs have increased, it’s worth noting that state leaders are paying attention and looking for solutions; increases in the state’s Opportunity scholarship, Advanced Opportunities funding and the recent decision by presidents at Idaho’s public colleges and universities to freeze tuition levels for students next year are all great examples of this. That said, the reality is that college and career education affordability is a multi-pronged approach that includes the need for families to be proactively planning and saving early.

Despite these economic circumstances, college savings plans remain one of the best and most unknown tools for helping to make higher education more affordable. Savings grow tax-deferred and when withdrawn for qualified education expenses, the funds are free from federal and state taxes. Some 529s, like IDeal, even often offer state tax deductions on annual contributions. This means Idaho families can potentially have more money to put toward these important goals. Our mission at IDeal is to empower Idaho families to save for the future education goals of their loved ones in a tax advantaged way. Part of our challenge is to raise awareness about the importance of saving and the impact that decision can have on a student’s outlook on what level of education they can attain. Currently, only four in ten Idahoans are aware of our state’s 529 college savings program.

But I’m a firm believer in the phrase “knowledge is power,” and here’s why.

Research from the Center for Social Development at Washington University in St. Louis shows that having a dedicated savings account makes students up to seven times more likely to pursue and complete a higher education degree. This is regardless of the amount saved in their account. The key takeaway here is that every little bit helps, and, students who know their parents, grandparents or other loved ones are saving for their dreams are more likely to think about a life somewhere on a college or career/technical school campus after high school.

Currently, more than 39,000 families have opened IDeal accounts and are investing in the future of Idaho’s next generation and this holiday season is an opportune time to join these ranks. Opening and or contributing to an account by Dec. 31 allows the account owner to enjoy the tax benefits of the program for the 2019 calendar year. Idaho taxpayers receive a maximum $6,000 state income tax deduction per individual taxpayer, or up to $12,000 if married filing jointly, from their state adjusted gross income annually for contributions to IDeal.

Starting an IDeal 529 account takes just $25 and about 10 minutes online at www.idsaves.org. Gifting to a loved one’s account is an option as well through the Ugift platform which enables aunts, uncles, cousins and friends to make the meaningful and lasting gift of college savings money directly into an individual account. Gifts are also eligible for the annual state tax deduction. In fact, more than $2.3 million in gifts have been deposited into IDeal 529 savings accounts for the 2019 calendar year so far.

With kids of my own, I know the desire can be strong to give toys, clothes, video games or gift cards to children this time of year. The immediate gratification is fun but consider for a moment the message and support that is delivered by investing in a young person’s educational future. That is an immeasurable gift.

If you are still looking for that perfect gift, I invite you to learn more and to consider giving your loved one the gift they didn’t know they wanted. By doing so you may greatly enhance their ability to pursue and complete their educational dreams and reduce the amount of potential student loan debt they incur. Together, we can help Idaho families plan, save and potentially grow their hard-earned dollars while encouraging all Idaho students to dream big. They will thank you later, I promise.

Christine Stoll is Executive Director of IDeal, Idaho’s 529 College Savings Program. She is an active member of the National Career Development Association, College Savings Plan Network and the Idaho Financial Literacy Coalition. She has 19 years in the field of education and earned her Bachelor and Master’s degrees from Boise State University.