Are you looking to give a different kind of gift this year – one that really shows how much you care? Then you need to read Four Financial Gifts to Consider for the Holidays from the Wall Street Journal that suggests 4 ways to give a gift that offers your recipient something more: more for their future.
Not cash or a check stuffed in an envelope. Think of gifts that can help a person save for college or deal with a big expense, or teach them how to manage their money more effectively. Some gifts may even help the giver save on taxes.
We at PlumTree strongly support the Wall Street Journal’s idea to help out a family member or friend with a contribution to a 529 plan – we call this the Gift of Education. Helping your children or other friends save for college by putting some money into their 529 shows how much you value education and support their goals and family values. If this makes you uncomfortable and you really want to give a tangible gift that a child can open, you still can! Split the gift up – half of your gift can go to an awesome toy or book or other present and the rest can go into the 529.
We’ve also spoken a lot on this blog about another type of gift of education: sending a family member or friend to a Certified Financial Planner to get on track for a successful future. What better way to show someone that you are invested in their success? As you already know, managing money doesn’t come naturally to everyone – and how else are people going to learn the difference between a 401(k) and an IRA? This type of gift will pay off for years to come, in many ways that you may not even imagine now.
The Wall Street Journal provides some additional details on these and other gifts for a different kind of holiday present – a wonderful gift now that may pay great dividends in the future.