This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

6 Holidays Gifts That Make Financial Sense





If the three wise men arrived in Bethlehem today, would they come bearing gifts -- or gift cards?

After all, somewhere in the last couple millennia, frankincense and myrrh have fallen out of favor as presents. Gold is still popular, but a little heavy to lug around. So, 21st-century versions of the three wise men (which by now would surely include at least one wise woman) might do what so many of their modern-day peers do: fall back on gift cards.

Then again, being wise men, or wise persons, they might skip the gift cards in favor of one of the options below.

Gifts that make financial sense

While perhaps the most convenient, gift cards are far from the most personal way to give money. Here are six gifts that can provide more meaningful forms of enrichment to the recipient -- and in some cases the giver too.

1. A child's first bank account. This would be appropriate for a young, close relative. It is a way of giving money that encourages saving. It can be made more exciting if presented in a way that makes a child feel grown up, and if you emphasize the prospect of more rewards to come in the form of savings account interest.

2. A 529 plan contribution. A 529 plan is an educational savings plan that allows investment earnings to accrue tax-free. Contributions to these plans must ultimately be used for educational purposes by the designated beneficiary. Contributions are also subject to gift tax rules, but that won't be a factor unless you plan on giving someone more than $13,000.

3. A certificate of deposit. In particular, a long-term CD can be a good choice when you want to give a teenager the option of using the money on something other than education, yet you want to discourage them from spending it right away. An added advantage is that long-term CD rates generally exceed standard savings account interest rates.

4. A charitable contribution in someone's name. Giving financial gifts to kids is socially acceptable, but it can get a little tricky when it comes to your peer group. One alternative is to give a charitable contribution in the person's name. This form of gift can be more meaningful if you take the time to find a charity that the recipient likes to support.

(OK, so you want to give something more personal? Gifts 5 and 6 make financial sense for the giver, but also offer a very personal touch.)

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs