For Halloween this year, Americans spent 4.9 billion dollars on candy, costumes and decorations! The biggest spending holiday is just around the corner and the estimated purchases will exceed over $220 billion. Eight billion will be spent in decorations alone! What are people buying? The top 10 gift ideas for 2006 are digital cameras, cell phones, MP3 players and iPods, DVD’s, jewelry, books, chocolate, wine and travel packages!
Gallup reports that each year when they do their holiday polls, the majority of Americans say they plan to spend less than they spent the previous year. Each year they spend more. Last year, Americans 50+ spent more on holiday gifts than any other age group. Parents and grandparents are leading the way in purchase power!
As you search for a lasting meaningful gift this holiday season, you may consider a gift of a unique nature, something not on this year’s top 10 list. This gift I’m talking about has the potential to be better than the latest and greatest toy your child or grandchild may want. It is the gift of a financial legacy. Gifting a legacy can help a loved one’s financial future and have a lasting impact on both the person receiving the gift and the person giving the gift!
There are several ways you can gift a loved one a financial legacy. Be creative! Here are some ideas I’d like to share with you.
You can start or add to a college savings plan, which are called 529 plans. These plans are state sponsored and allow relatives and friends to invest in a child’s college education. Account earnings can grow tax-deferred and may be withdrawn federally tax free when used for qualified education expenses per Charles Schwab. How cool is it to help sponsor one of your grandchildren’s education? Now, that’s a gift of lifelong value. It’s a gift that says, “I believe in you and want to be part of helping you create your dreams.” Current statistics state that on average parents have about $12,000 saved for their child’s tuition when the child is between 14-17 years old. That may be enough for one semester at a private school or for one year at a public school.
Or what about gifting your children or grandchildren an inheritance while you are still alive? Watching them get joy can bring you great joy too. My parents are a firm believer in this concept. They have three adult children. They’ve helped with down payments on our homes, gifted money for wonderful vacations and have gifted “just because” money. My mom always says, I’d rather be alive and be a part of your joy!
What about giving the gift of financial education? You can do this in so many ways. You can buy stocks or mutual funds for your loved one and teach them how to monitor the fund’s progress. You can have monthly conversations about how the fund is performing. This is a way to stay connected long after the holidays are over.
You can gift a certain amount of hours with a financial professional, such as a financial educator/coach or a financial planner. Many newly married couples with different attitudes about how to manage money and who are in transition from “mine” to “ours” could use the help of a money coach. It helps for couples to be on the same page, and to have agreement on the vision of their future in order to build wealth.
Or you can gift a parent and their college age child a couple of hours with a financial coach to sit down and plan out college expenses, not just tuition, room and board, but monthly living expenses at college. It helps for all to be clear about what’s expected from all parties involved.
What if you gifted a piggy bank with starter money for a car, and for everything your grandchild saved, you matched? You would be gifting not only cash, but a legacy of teaching another how to save money, how to delay gratification and you can have fun while you’re at it!
What about gifting your adult child seed money to begin the business of their heart’s desire? Or, gifting them time with a financial professional to create a solid business plan.
You could gift a class in financial education, books, or monthly financial newsletters. One of my clients gifted her mom long-term care insurance. Another gifted time spent with an attorney to create a living trust package.
This holiday, I ask you to consider the gift of a financial legacy. It’s an investment in another human being, their dreams and their security! This type of gift can create lasting change in another human being’s life!
My gift to you this season is a blessing. I wish you good health, relationships based on love, compassion and truth, plentiful moments of joy, and may you experience prosperity in all its forms. Blessings and love, Denise
