While there are few experiences that can match the pleasure felt in opening a brightly wrapped gift. However, that memory soon fades. What if you could give something that would benefit the recipient for the rest of his or her life?
This is something to consider when giving gifts this holiday season. Financial gifts can help the recipient get on the right track, and be a great way to show that you care.
Financial Gift Ideas
Here are four financial gift ideas to consider this holiday season:
- RESP: Start a RESP meant to benefit a child. You can contribute to it regularly during the holidays, and for birthdays. As the child grows, so does the RESP account balance -- and the money can be used to fund a post-secondary education. As part of a financial plan for the future, the RESP can be a great gift that lasts years and benefits the recipient, through the knowledge obtained at college, for the rest of his or her life.
- Investment: Purchase shares in a solid company for the recipient. Choose a dividend stock, and a bit of income can continue coming in regularly. Teach a child (especially a teen or college student) the importance of making wise investment decisions for the future.
- Piggy Bank: If you think that the holidays should include the fun of opening a present, you can give a piggy bank. If you are going to spend your holiday budget on tangible gifts, this can be a good choice. A piggy bank can be used to teach valuable lessons, and you can even get banks with different divisions to help them plan and prioritize their spending.
- Books: You can also consider giving financial books. There are activity books, designed to educate about finances, as well as other interesting books on money management, investing and other topics. Give one of these books, and the recipient can obtain valuable skills and techniques that will help him or her prosper.
You don't need to turn Christmas into a time to give meaningless gifts that will be forgotten almost immediately. Instead, consider giving a financial gift that will put the recipient on the right financial track for the rest of his or her life.
This post was included in the Carnival of Personal Finance at 20 and Engaged.
I hope lots of people consider giving the gift of a financial education to a young person this year. There are few gifts I can think of that will make a bigger difference in a person’s life over the long term. For me, it’s not just about teaching a young person to save or invest, but it’s especially about giving a portion of your money to a cause you care about. Not only that, but it’s also about learning to use your money as a tool to have the life you love and provide the people in your life with the best options and opportunities available.