Are you racking your brains trying to think of what gift to give to your child this birthday? Or better still for Christmas? Would a bike excite him or a just give your child money and have him or her spend it their way. Without you even realizing it, you possibly may have made the most sensible decision to gift your child with financial gifts which would help him in the future, albeit not just cash to squander away. Here’s a look at some interesting financial gifts which could also work at building your child’s future in the long run.
529 plans: These are college savings tax free funds that can be saved which would help in providing for your Childs college education. The holder of this account can manipulate the account and control the actions of the beneficiary as well. As parents you would be doing a great job by saving up for your child education as the child is liberated from having to take away time from studying due to the need for odd jobs for saving up for college.
Roth IRA: This may seem useless to a child, but in the long run would prove to be a great gift, as it would be tax free withdrawals during the older year of his or her life. Later in life your child will thank you for having opened this account and initiated forced savings into it.
Cash: This is by far the most welcome gift to a growing child. He or she would have already started dreaming of ways to spend the money without even having received it. But if the idea of saving is instilled in a child, your child would be sensible enough to put in the money for it to grow further than just spend it on something not really worthwhile at the moment.
Savings bonds: Being futuristic in approach is always good. It always helps to invest in savings bonds and then gifting it to your child for future use. These bonds are assured as they are protected by the federal Deposit Insurance Corporation and are deemed earnings for the future. You can purchase savings bonds from banks or credit unions after checking on the available return on investments.
Build your child’s future, help him or her live his dreams!