By Lisa Gerstner
From Kiplinger’s Personal Finance
For the children on your gift list this holiday season, you can buy the latest gadgets or fashions—items they may not even recall a year later.
Or with $1,000, you can invest in the younger generation’s future with these three ideas that can have a much longer lasting impact.
Consider:
Fund a 529 College-Savings Plan
With a 529, you can invest for your child’s future educational expenses. Contributions to the account grow tax-deferred, and withdrawals to pay for qualifying higher-education expenses—including college tuition, room and board, computers, and books—are tax-free. You can also take up to $10,000 per year in tax-free distributions to cover school tuition for grades kindergarten through 12….