5 Financial Gifts That Could Give Your Kids and Grandkids a Head Start
Skip the usual gift cards. These five financial gifts can help kids, teens and young adults build savings, invest and reach important milestones.
Landing on the right presents for the young people in your life can be a challenge.
While a gift card to their favorite retailer is almost always a safe bet, something that gives them a long-term financial boost or opens the door to a fun experience may be just as welcome.
Consider these financial gift ideas to supplement your holiday shopping.
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Pay for a Costco membership
A wholesale-club membership might not sound like an enticing gift, but visiting Costco has become a trend on TikTok among teens and young adults.
Price-conscious shoppers show off their "Costco hauls" and rave about the low prices at the food court. And a Consumer Reports study released earlier this year found that Costco offers the best prices on groceries. Membership starts at $65 annually.
Gift your points or miles
With the rewards you’ve accumulated in a travel loyalty program, you can give the gift of adventure. If the recipient is a member of the loyalty program you use, you may be able to transfer points or miles directly to their account.
Some programs, including those from Hilton and Marriott, allow free transfers; others, including many airlines, charge a fee.
Alternatively, you could redeem your rewards for a gift card that the recipient can use to book flights or hotels. A third option, if you know the person well enough to feel comfortable doing it: Book a vacation package for them with your points.
Fund a 529 college-savings plan
Contributing to a child’s 529 plan is a great way to bolster savings for their future higher-education costs. The money grows tax-deferred and can be withdrawn tax-free for qualified expenses, such as tuition, room and board, and books.
If you’re a grandparent, opening a 529 for your grandchild comes with a distinct benefit: On the Free Application for Federal Student Aid (FAFSA), distributions from a grandparent-owned 529 don’t count as student income, and the 529 is not considered an asset, meaning those savings won’t affect the student’s eligibility for federal aid.
A parent-owned 529, on the other hand, is reported as an asset, reducing aid eligibility by up to 5.64%.
Plus, helping to cover your grandchild’s college expenses can give your adult kids breathing room to save for their other goals, such as retirement.
Open a Fidelity Youth account
A parent or guardian who has an existing account with Fidelity can open a Youth brokerage account for teens ages 13 to 17, who own the account independently.
Parents can monitor activity, but they can’t make trades or withdrawals. The account requires no minimum opening balance. Plus, teens can buy fractional shares of stocks, so they don’t need a lot of cash to get started.
Help with the down payment on a home
First-time buyers make up only 21% of all homebuyers — a record low — according to a report from the National Association of Realtors, with limited inventory and afford-ability challenges keeping many young adults on the sidelines.
You can make the dream of homeownership more attainable for a loved one by contributing to their savings for a down payment.
In 2026, you can give away up to $19,000 per recipient without filing a gift-tax return. If you’re married and helping, say, an adult child and their partner save up, you and your spouse can give them as much as $76,000 without gift tax consequences.
Make a plan for your family's financial future
Giving a financial gift can make a lasting difference, but it's important to balance helping loved ones with your own financial goals. A financial adviser can help you explore tax-smart gifting strategies, plan for retirement and determine how much you can comfortably give.
Use the tool below to connect with a financial adviser who can help you build a plan:
Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
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