Financial giftings can be good alternatives to the traditional presents such as gadgets and gift cards, and provide potential benefits beyond their material purpose. We’re not talking about cash, which gift recipients are just as likely to use for everyday expenses as they are for that “special something” you intended them to purchase. Instead, we’re referring to things such as college savings plans or savings bonds.
These kinds of financial gifts can provide a foundation for the future because they have the potential to grow in value over time. Depending on the type of financial gift you choose, it could also help your gift recipient increase his or her financial literacy, as well as take care of specific needs.
For example, setting up and contributing to an Individual Retirement Account (IRA) can help a young person invest for retirement while learning how potential earnings on the contributions to his or her account may compound over the years.
To learn more about these and other types of financial gifts, download “The Financial Gift Guide: Six Alternatives to Traditional Holiday Gifts.”