Not sure what to get your kids or grandkids this year for Christmas? With only a handful of days remaining, I have a few Christmas gift ideas that might just be what you should be putting under your tree. These are more about giving a gift to set them on the right financial path.
How can a financial gift be a thoughtful gift?
If you help your child or grandchild go to college, pay for a special trip, or give them some help achieving some other financial matter, you are showing that you are personally invested in them achieving their goals. Your gift might help them achieve something that wouldn’t be possible for them to do on their own. That might be the most thoughtful gift they will ever receive.
Is there a way to make a cash gift a learning opportunity?
One great way to accomplish this is to start a savings account for them that has a specific purpose, for example helping a teenager save for their first car. Your cash gift could be the spark that gets them to start saving more of their earning to get that car sooner.
What types of money gifts would be good if you want to encourage long term savings?
Something that parents or grandparents could do is starting buying savings bonds for their kids or grandkids each Christmas, it can be more of a stocking stuffer gift but it is a great way for them to slowly build earnings overtime and have a nice investment 10 or 15 years later. And this is a great tradition to start for your family at an early age.
Are there any options besides savings bonds to encourage long term savings?
There are always gifts of stocks or shares in mutual funds or for children or grandchildren that are working, you might consider funding their annual IRA contribution to encourage them to start saving for retirement. Any of the options provide a greater depth of financial wisdom that will be beneficial to them their entire life.
What if you want to help your adult children who happen to be parents themselves?
A great gift to any parent with young kids is a donation to their child’s 529 College Savings Plan. The cost of college continues to rise and every parent welcomes any additional funds that can help them pay for their child’s education. You might be the catalyst that starts your grown children to begin planning for their kids’ financial lives.
Will these gifts be super popular on Christmas morning?
I can’t guarantee that these gifts will be recognized as the best gift ever on Christmas morning but there will come a time that your kids or grandkids will realize that your gift of being personally invested in their life goals was really the best gift they ever received.