May 22, 2024
Finance

PERSONAL FINANCE: Financial gifts with a lasting impact | Business


The gift-giving season is here. If you are like a lot of people, this means you have brainstormed presents to give your children and grandchildren.

While it may be tempting to purchase items like toys and clothes that can be enjoyed immediately, you may want to consider gifts that will provide value to the recipients for years to come.

Here are a few financial gift ideas that they can use and appreciate long after the wrapping paper comes off:

Contribute to a savings account. Help instill the importance of financial discipline by gifting funds to open a savings account. Encourage young ones to save at least a portion of what they earn through allowance, chores, or a part-time job. Like any habit, saving takes practice before it becomes second nature.

Purchase a U.S. savings bond. Give someone you care about a secure way to save. Savings bonds are an investment backed by the U.S. government. There are no fees or expenses, and bonds generally do not trigger state or local taxes.

Donate to charity in the recipient’s honor. A charitable donation is a thoughtful way to acknowledge a cause your loved one cares about. As you research charities to support, look for ratings that indicate how efficiently these organizations use donations.

Fund education savings. Your generous gift can help a student start saving for future college costs. There are several types of savings and investment plans designed to help students, parents and other supporters save for future education expenses. Every little bit helps. A small contribution to a 529 plan today will be given the chance to potentially grow and could make a significant difference when your child or grandchild is ready for college

Help chip away at a debt. Many young adults are burdened by student loan debt. Juggling work and loan repayments can be challenging. Your loved one will be pleasantly surprised when you relieve them of loan payments.

Help with a down payment. Purchasing a car or a first home may be out of reach for many young adults. If you have loved ones who could use help with these major purchases, your financial gift can assist them as they get settled and on their way to greater financial stability.

Give the gift of cash. Everyone appreciates a cash infusion. If you’re so inclined, you can suggest how the money is spent, but they may appreciate being able to decide for themselves.

Gift an appointment with a financial advisor. Help your loved ones establish a financial plan with the assistance of an advisor you know and trust. This thoughtful gesture can create lasting value by helping lay the foundation for future financial security.

Jessica B. Jimenez is a financial advisor with Jon L. Myers & Associates, a private wealth advisory practice of Ameriprise Financial Services LLC in Central New York. She specializes in fee-based financial planning and asset management strategies and has been in practice for 14 years. To contact her, visit ameripriseadvisors.com/jessica.b.jimenez.com or call 315-251-0512.



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