The Top Financial Gifts to Give Your Kids This Holiday Season

Family

The festive season is here, and by now many of you are probably looking for best gift you could give your kid (s). There are many gifts to give your kids, but a financial gift is among the best. It is not only valuable, but it can help your little one to appreciate the value of money, investing, and saving wisely. As time goes by, if you gifted your child wisely, and taught them how to grow use their financial gift wisely, you will realize that you didn’t just give your kid a financial gift. You also taught them a lifelong skill. Skills that will help them live a better and more comfortable life. In this article, we are going to look at some of the top financial gifts you can give your kids.

Custodian Investment Account

You could open a custodian account with a brokerage firm, which will give your child a first-hand account of investing in the stock market. Of course, everything they do will be under your supervision as their guardian or parent. You can gift them with as little as $100 and they will be able to buy and sell several stocks. To make it a life lesson, you have to let them make a decision on what to buy or sell. You are allowed to gift as much as $14,000 without paying for any gift taxes as of 2017. The gift tax exclusion will go up to $17,000 in 2018, making it an attractive way to save for your kid’s future, while helping them, to learn stock market financial skills as well.

Monopoly

This is a 1935 classic board game that will not just entertain your kid. It will also help them gain actual financial skills when playing with “Monopoly Money.” Some of the money skills they will learn include diversification, negotiation, and money management. Furthermore, they will be able to practice arithmetic skills and build their social skills as well.

Custodial Roth IRA

Is your kid working on a summer job or earning from their startup? Well, you should consider setting up a Custodial Roth IRA account for them. Furthermore, you can contribute up to $5,500 as of 2017 and 2018 to their account. There are some major benefits to your child having a Custodial Roth IRA account. They include the following:

  • Same contribution limits as adults, which allows them to learn the importance of making saving over a long period.
  • They will get over 10 years of compounded interest from that account.
  • Their savings will take a tax-hit now, but grow tax-free forever.
  • It’s a perfect “safe experiment,” which your child can use to learn about real-world financial investments.

529 Savings Plan

What are your plans for your child’s college education? How much debt are they likely to graduate with and how can you help them lower it? Most students graduate with as much as $40,000 worth of debt. You can help them to cut down on that debt by starting a 529-college savings plan for them. Under that plan, they will be able to use the money to pay tuition fees, academic fees, boarding, and transportation fees. Furthermore, they won’t be charged any taxes while withdrawing the money to fund their education expenses.

A Bank Account

You can present your child with a kid’s bank account that is complete with a debt card and checkbook. Such an account will allow them to learn how to manage money they earn. They will also learn that you have to earn money to own it. That will help them be creative in starting business ideas instead of relying on gifts alone.

Money gifts are definitely a valuable gift. That’s because unlike an adult, a child has more time to invest and enjoy the benefits. We hope that you found this article on The Top Financial Gifts to Give Your Kids This Holiday Season to be informative and a eye-opener.


Add Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Yogi Berra
20 Yogi Berra Quotes That Apply to Business
Gympass
20 Things You Didn’t Know About Gympass
Away
20 Things You Didn’t Know about Away
Steph Korey
10 Things You Didn’t Know about Away CEO Steph Korey
Massachusetts
How to Apply for Unemployment in Massachusetts
California
How to Apply For Unemployment in California
Pharmaceuticals
Is Denali Therapeutics a Solid Long Term Investment?
New York
How to File For Unemployment in New York
Deschutes River
The 20 Best Things to Do in Bend, OR, for First Timers
Costa Di Mare
The 20 Most Romantic Restaurants in the United States
Ocean Drive
The 20 Best Things to do in Newport, RI For First Timers
Lake Merritt
The 20 Best Things to Do in Oakland, CA for First Timers
1937 Cadillac Phaeton 5859
10 Things You didn’t Know About the 1937 Cadillac Phaeton 5859
2021 Genesis G80
10 Things You Didn’t Know About The 2021 Genesis G80
2020 Audi Q7 55 side
10 Things You Didn’t Know About the 2020 Audi Q7 55
Gumpert Nathalie EV
10 Things You Didn’t Know About the Gumpert Nathalie EV
Watches
How Jomashop Became a Leader in Online Watch Sales
Jack Mason Yacht Timer
The 10 Best Jack Mason Watches Money Can Buy
I.N.O.X. Professional Diver
The 20 Best Swiss Army Watches of All-Time
Orrery Tourbillon REF. 2GGBP.U01A
The 10 Best Graham Watches Money Can Buy
Andrew Serwer
How Joe Montana Achieved a Net Worth of $80 Million
Steven Crowder
How Steven Crowder Achieved a Net Worth of $3 Million
Don Lemon
How Don Lemon Achieved A Net Worth Of $10 Million
Sting
How Sting Achieved a Net Worth of $400 Million