With the Holidays fast approaching, most of us are still scrambling for those perfect last minute gifts for the special people in or lives. Before you jump on to Amazon and try to find something that will make it on time, why not consider giving your favorite loved ones something a little different this year? Recently, I read an article by Kimberly Lankford, a financial journalist for over 20 years, and she shared her suggestions for “8 Great Financial Gifts for Kids”1. I’d like to share a summary of them below that might help you think about some of those last minute gift decisions in a different light and possibly inspire some of your gift giving options for 2021 birthdays and special events.
Her top suggestions are listed below, not in any specific order:
Roth IRA for working kids – help your newly employed child get a head start on retirement planning, parents can offer to match their child or grandchild’s contributions
Contribute to a 529 college savings plan – set up a savings plan for your child or grandchild, make sure the plan participates in the Ugift529 program and you can set up your gift contributions with a certificate showing the amount of your gift
Buy some stock – gifting stock used to be more difficult, but now there are easier vehicles to choose from and this may even inspire a love of investing from an early age
Give money from a donor-advised fund – again, this used to be more difficult in the past, but some firms are offering minimal amounts of money to be invested to help inspire families and their children to invest charitably
Contribute to an ABLE account for children with special needs –family members and friends can contribute on the behalf of a child with special needs to make sure that they are financially provided for over the course of their life
Give a few hours with a financial planner – great gift idea for a graduating teenager or young adult, let them see how planning ahead can improve their financial future
Gift a wallet – this is perfect for younger children to help teach them the value and importance of taking care of your money
Give an experience – gift money for them to set aside money for a future family trip or contribute to a special fund to all go on a family vacation together when COVID restrictions are lifted
Financial gifts for babies – the easiest way to make a big difference is starting a 529 plan for them as early as possible, a small gift over a long time makes a significant impact or even starting off with a piggy bank, it’s never to early to start
Hopefully, I’ve inspired you to think differently about your gift giving for your children, grandchildren or others. If you would like to discuss any of these ideas further to see if they would be the right fit for your family, please reach out today and I am happy to answer your questions.
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https://money.usnews.com/money/retirement/iras/articles/financial-gift-ideas-for-children-and-grandchildren - December 4, 2020 at 2:34 p.m.