How to Give the Gift of Investment This Year

If you have children, then you’ll know that the search for that perfect gift for them can be enormously time consuming.  However, there might just be a perfect solution to your gift-giving needs this season.  Rather than gift cards or new clothes, why not give an investment gift?

There are several different ways that you can setup an investment gift for your kids or another loved one.  For instance, you can easily set up a Roth IRA for your kids.  This can be an excellent way to help ensure that your children are set for the future.  Roth IRAs offer tax-free growth, but they also let you take your money out without a tax penalty after a certain age.

Another investment gift that you can give your kids is that of a mutual fund.  You can setup an automatic monthly investment plan that allows you to contribute a certain amount every month toward your children’s future.  In addition, there are all types of funds, including those with very low minimum investments.

Finally, consider setting up an automatic savings account.  These are nontraditional savings accounts, and allow you to roll over some of the "change" from debit card purchases into a savings account.  This builds up savings far faster than relying on interest and can make a fantastic gift that offers future stability for your kids.

These are only a few of the different investment gifts out there that can be beneficial to your children’s future financial health.  Be warned that they may not appreciate it in the short term, but you can explain to them that by the time they are X years old they will have enough money to buy a real car (or a real pony!).  Such a gift really can keep on giving – far, far into the future.