Why not explore gifts beyond traditional options to offer lasting value in a season of giving? Investment-themed presents provide unique ways to introduce loved ones to the world of finance, whether they’re just starting or looking to build on existing knowledge.
Here are some financial gift ideas that can pave the way toward long-term security and growth.
Set Up a Custodial Account for Minors
Giving children an early start with a custodial account can establish a foundation for financial literacy and discipline.
Custodial accounts under the Uniform Transfers to Minors Act (UTMA) or the Uniform Gifts to Minors Act (UGMA) allow minors to hold stocks, bonds, or mutual funds. An adult manages these accounts until the child reaches adulthood, enabling early exposure to investing fundamentals. As the account grows, so does the child’s curiosity and understanding of finances.
A custodial account is more than an asset investment—it’s an investment in knowledge and future financial independence.
Consider a College Savings Plan
A 529 college savings plan is an excellent way to contribute to someone’s educational future while offering tax advantages. Funds can be used for qualified educational expenses like tuition, books, and housing.
Offering friends or family a contribution toward a 529 plan is a thoughtful gift that reduces future financial burdens and makes higher education more accessible.
Invest in Treasury Bonds
Treasury bonds may not seem as exciting as other investments, but they offer a dependable, government-backed way to help secure someone’s future.
These bonds are ideal for risk-averse individuals or those new to investing because the full faith of the U.S. government backs them.
Treasury bonds can be gifted in denominations as low as $25, allowing flexibility to match different budgets. Upon maturity, they provide a steady income stream and make a solid addition to any investment portfolio.
Gifting a treasury bond enhances financial security and is an educational tool for learning about interest and safe investment options.
Gift a Share or Fractional Share of Stock
With the growing popularity of fractional share investing, gifting a whole or fractional share of a global equity ETF like Vanguard’s Total World Stock ETF (VT) has become an accessible and meaningful option.
Gifting a share, whether full or fractional, can spark an interest in investing and financial literacy. By choosing a global equity ETF, you introduce your loved ones to investing in a diversified portfolio, which can help mitigate risk compared to single-stock investments. ETFs are excellent ways to teach about market performance and the benefits of long-term investing, as they often have lower fees and can track a broader market index.
Gift a Gold or Silver Coin
Precious metals like gold and silver appeal as physical assets and hedges against inflation.
A gift of a gold or silver coin can provide a sense of security and an introduction to tangible investments. Coins often carry historical or cultural value, making them fascinating collectibles and assets. They can be held for years, gaining potential value over time, and their portability adds to their flexibility.
Gold and silver coins are available from reputable mints, offering a meaningful way to pass along a legacy of wealth preservation.
Introduce a Beginner’s Investing Course or Book
Learning is a gift that keeps giving. An online investing course or a well-regarded finance book can provide someone with knowledge that will benefit them for years.
Choose a resource geared to the recipient’s level—beginner guides for novices or advanced insights for those with some financial background. Many platforms offer structured online courses on stock market basics, real estate, or personal finance strategies.
Books by respected finance authors offer timeless advice on saving, investing, and wealth-building. By giving this gift, you’re providing empowerment through knowledge.
Open a Roth IRA for a Loved One
Setting up a Roth IRA for a family member with earned income, like a child with a part-time job, introduces them to retirement planning principles.
Roth IRAs are particularly attractive due to their tax-free growth and tax-free withdrawals in retirement. Contributions can be withdrawn at any time without penalties, providing some flexibility.
This gift shows the importance of early retirement savings and gives them a head start on a comfortable retirement. Even a modest initial contribution can grow significantly, impacting their financial future.
Choose a High-Interest Savings Account
A high-interest savings account might not sound glamorous, but it’s a perfect fit for risk-averse friends or family members who value security over risk. These accounts typically offer higher interest rates than traditional savings accounts, allowing money to grow with minimal effort. Many online banks provide excellent rates with lower fees than traditional institutions.
Ensure the savings account is insured by the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Association (NCUA).
Opening such an account as a gift is an encouraging way to promote regular saving habits. It also offers the added benefit of seeing returns over time.
Provide a Financial Planning Session
Sometimes, the best gift is expert guidance. A session with a certified financial planner can offer invaluable insights and tailored advice for a friend or family member. Whether they need guidance on budgeting, investment strategies, or retirement planning, a financial planning session gives them tools and personalized recommendations.
Many financial advisors offer one-time sessions that cover goal setting, risk assessment, and tax strategies.
This gift provides direction and confidence, empowering recipients to make informed financial decisions.
Invest in a Fund Focused on Social Responsibility
For socially conscious individuals, a socially responsible investment (SRI) fund can align their values with their financial goals.
SRI funds prioritize companies that meet environmental, social, and governance (ESG) standards, investing in businesses focused on sustainability, social impact, and ethical governance. Gifting an investment in an SRI fund is meaningful because it supports the causes the recipient cares about while encouraging growth. It’s a chance to merge personal beliefs with financial ambitions, giving them financial returns and a sense of purpose.
Consider a Digital Wallet with Cryptocurrency
Cryptocurrency can make a novel and intriguing gift for the tech-savvy or adventurous investor.
Creating a digital wallet with a small amount of cryptocurrency is a way to introduce someone to the evolving world of digital assets. Cryptocurrencies like Bitcoin, Ethereum, or stablecoins provide an alternative to traditional investments.
This gift should have an educational component because cryptocurrency markets are volatile and have other risks associated with them.
Contribute to a Donor-Advised Fund
A donor-advised fund (DAF) can be a thoughtful gift for someone passionate about philanthropy. It allows them to support causes they care about.
Contributions to a DAF allow the recipient to recommend grants to charities over time, enabling ongoing involvement in charitable giving.
It’s a flexible, tax-advantaged way to support various causes, with the option to add funds whenever possible.
This gift combines philanthropy with financial planning, allowing your loved one to make a difference.
Final Thoughts
Investment-themed presents are unique and impactful gifts that can help loved ones achieve financial literacy and security.
Whether you opt for an educational course, a share of stock, or a donor-advised fund, these gifts provide a foundation for growth and learning. You’re contributing to a legacy beyond the holiday season by giving a gift rooted in financial wellness.\
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. Content in this material is for general information only and is not intended to provide specific advice or recommendations for any individual. All investing involves risk, including loss of principal. No strategy ensures success or protects against loss.