What’s the Best Way to Give a Financial Gift?

By Anum Yoon

When it comes to gifts, we all know it's the thought that counts -- which is why there are certain self-described gift-giving mentors who don't encourage financial gifts. Of course, those same folks have probably been on the receiving end of monetary ... ifts and were ecstatic.

As with all things in life, there’s a right way to give a financial gift, and a lot of that has to do with the recipient and their age. Here are some things to consider for the next time you reach into your wallet for a gift:

Gift a 529 Account

Parents of newborns have a lot on their minds. They might not be thinking about that kid’s college education just yet at least, until they master the art of the diaper change!

 As a supportive friend or family member, you can help get them started on that looming tuition bill by providing them with information about a 529 college savings plan. Once they’ve set up that account, you can then be the first contributor.

All you need is the account number to make a transfer. This is actually one of those financial gifts you can keep coming back to every year. By the time the little one is ready for college, they could have a very decent nest egg.

Give Cash to Young Ones

Cash in an envelope is such a wonderful surprise. That’s true at any age, but it works especially well for younger recipients. It’s a great way to start teaching kids the value of money. They’ll be faced with an immediate choice: spend or save. If they have their eye on a special gizmo, then saving will be the only way to go. That cash also helps with math skills, as it assigns numeric values they can see.

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https://lenpenzo.com/blog/id40674-whats-the-best-way-to-give-a-financial-gift-2.html