Create a savings account for a particular goal
If you have a younger person in your family – possibly a teen or college student, consider opening a savings account for a short or long term goal.
This could be for a home down payment upon graduating from college, later used for investments, or simply saving a few dollars for a business venture. Think about it. If you save only $50 per month per year for the next 4 years, this could equate to at least $2,400 for your loved one!!
Back in the day, this was the gift of choice for most grandparents!! But still can be a choice today. Saving bonds are just as the name implies are saving tools to purchase US debt in return of interest. The Series EE and Series I bonds can be purchased at face value and later redeemed for the amount and interest earned. This can make a great gift and also teach loved ones about saving bonds.
Coin collecting can pay off big. Many coin investors start by realizing they have a unique or rare coin in their possession. Loved ones can consider gifting a large sum of coins to kids. Have kids to seek out websites to determine history and value of the coins. This gift is two-fold – kids can learn about the history of coins and may have a great and rare investment on hand.
There are a few websites that will allow you to gift stocks to loved ones. Sites such as Giveashare.com can be a place to start. It allows parents to purchase one share of stock for loved ones. The stock is shipped and framed for you. There are many great companies you can choose from to get started.
Open a Roth IRA
If your teenager or college kid has a job, he or she may be eligible to contribute to a Roth IRA. As a parent, you can open a custodial Roth IRA for a child. Contributions can be made up to $6,000 per year or up to the amount earned (not to exceed the limit). The great thing about this account, kids learn about investing and have the ability to grow their money overtime.