Gifts With Lasting Impact

Looking for gifts that will be appreciated long after the holiday decorations are stashed away for next year? Here are a few ideas for presents with lasting impacts.

For younger children or teens: Encourage an interest in investing with a gift card from Stockpile.com. For $25, $50, or $100, you can purchase fractional shares of stock from popular companies like Pepsi, Facebook, Apple, and Disney. The site offers physical gift cards you can put in Christmas stockings and e-gifts you can send instantly. Recipients redeem the cards on the site, which is an online brokerage. Twenty-five percent of Stockpile’s customers are kids and teens.

Help finance future qualified educational expenses for a loved one by contributing to (or establishing) a 529 savings plan. Although contributions aren’t pretax, earnings aren’t taxed. And some states will let you deduct a portion of contributions from your state taxes. Once the plan is set up, sites such as GiftofCollege.com and LeafSavings.com offer gift cards that make it easy to contribute directly to a 529 account.

For the older teenager with earned income: Encourage a teen to think about the future by helping them start a Roth IRA. You can gift money to fund their IRA for as much as they earn up to the $6,000 limit for 2020.Stocks, U.S. Savings Bonds, and CDs also make good gifts by promoting financial literacy in young investors.

For adult children: If a family member dreams of starting their own business, provide great insights on running a business, franchising, and meeting startup challenges with a subscription to Inc. or Entrepreneur. Magazines like Forbes, Bloomberg Businessweek, or Money might fuel an interest in investing.

Or give a gift of time. Younger adults just starting out might not have enough financial resources for serious investing – but they do need a financial strategy and could benefit from the guidance of a financial professional. Even an older adult child could benefit from a financial tune-up.

While you may be doing your best to teach your children and grandchildren about personal finances, confirmation from an outside source could reinforce your message. We’d be happy to educate them on the importance of setting long-term goals, creating a budget, and setting up a financial plan. We do not provide tax advice; coordinate with your tax advisor regarding your specific situation.