Holiday Shopping? Give the Gift of Financial Stability
Stocks and funds, savings accounts, and 529 plans are gifts that keep on giving.
With Black Friday behind us and Christmas fast approaching, many will be gearing up for travel, spending time with loved ones and, of course, checking off those holiday shopping lists. And while you may be dazzled by this year’s "Hottest Tech Gifts" or "Must-Have Toys," consider giving gifts that will keep on giving long after the holidays, especially when it comes to kids and young adults.
When I was 12 years old, my grandfather gave me what I thought was the worst Christmas gift ever—shares of a publicly traded stock. Typically, he would give us a cash gift, so this was new and unexpected. He showed me how to look up the stock in the newspaper and track the price. Along with the gift, he taught me about long-term investing, dividends, and other valuable investing lessons. The stock went up and down with varying economic events, but we never sold. The stock happened to perform well, and when I turned 22, the worst Christmas gift ever became the down payment for my first home.
While there are seemingly endless gift options this holiday season, consider one of the non-traditional presents below to help put your loved ones on the path to success:
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
SparkGift: A great alternative to cash (or clothes that kids grow out of), SparkGift offers a simple way to gift shares of stock or mutual funds hassle-free. The site lets you buy fractional shares of individual stocks and shares in a variety of exchange-traded funds, and you can spend anywhere from $20 to $2,000. This concept can serve as a great way teach kids about investing or saving. And, if the recipient holds on to it for a long time period, that gift can keep on giving.
Banking Basics: With most schools on break, December could be a great time to teach kids and young adults about money. Whether it’s a traditional piggy bank or a bank account, it’s important to start the savings conversation sooner than later. Helping a child establish their first account – a foundation of financial education – creates an opportunity to teach about savings, fees and interest. Rather than just opening an account at your current bank, ask your kids to help you research finding the right bank. Understanding the basics and developing good habits early on can be very beneficial to their financial future.
Start a 529: Known as a qualified tuition plan, a 529 is a savings plan designed to cover future education costs at qualified colleges across the U.S. It offers great tax benefits and an option to make a one-time contribution or set up continuous payments. Opening or contributing to the plan for the holidays is yet another opportunity to discuss the ins and outs of finances with your loved ones. Also, consider asking relatives to contribute to the plan as part of their gift—with minimum contributions starting as low as $50, family members can partake in setting up kids and young adults for a lifetime of success.
Taylor Schulte, CFP® is founder and CEO of Define Financial, a San Diego-based fee-only firm. He is passionate about helping clients accumulate wealth and plan for retirement.
-
Don't Overpay the IRS: 6 Tax Mistakes That Could Be Raising Your BillTax Tips Is your income tax bill bigger than expected? Here's how you should prepare for next year.
-
Flashback Finance: The Cost of Retiring the Year You Were BornJust like groceries, gas and home prices, the cost of retiring is subject to inflation. Here is a look at what it cost to retire in the year you were born.
-
How One Hospital Visit Overseas Could Wreck Your FinancesProper planning can give you peace of mind and protection, regardless of what happens on your trips.
-
Your Guide to Financial Stability as a Military Spouse, Courtesy of a Financial PlannerThese practical resources and benefits can help military spouses with managing a budget, tax and retirement planning, as well as supporting their own career
-
3 Steps to Keep Your Digital Data Safe, Courtesy of a Financial PlannerAs data breaches and cyberattacks increase, it's vital to maintain good data hygiene and reduce your personal information footprint. Find out how.
-
Here's Why You Can Afford to Ignore College Sticker PricesCollege tuition fees can seem prohibitive, but don't let advertised prices stop you from applying. Instead, focus on net costs after grants and scholarships.
-
Today's Senior Living Communities Are Not Your Grandma's 'Old Folks' Home': An Expert Guide to Shopping for the Right FitSenior living facilities have improved and are as diverse as the people who inhabit them. Now, they're more than just a place to go — they're a place to grow.
-
3 Common Misconceptions About Working With a Financial PlannerThink financial planners are only for the wealthy and that AI can replace human advice? Nope. Even people with moderate wealth need professional advice.
-
Should You Consider Investing in the Quantum Computing Sector? This Investment Adviser Has Some SuggestionsInvestors interested in quantum computing could consider ETFs focused on cloud services enabling small businesses to use big technology.
-
I'm an Estate Planning Attorney: These Are the Estate Plan Details You Need to Discuss (And What to Keep Private)Gen Xers and Millennials would like to know if they're going to inherit (and how much), but Baby Boomers in general don't like to talk about money. What to do?
-
I'm a Financial Adviser: This Is How You Can Minimize the Damage of Bad Market Timing at RetirementPoor investment returns early in retirement on top of withdrawals can quickly drain your savings. The ideal plan helps prevent having to sell assets at a loss.
