Financial Gift Ideas for the Holidays

Dec 8, 2022 2 min read

Financial gifts can yield big rewards, providing a sense of security for many holidays to come — and who wouldn’t love that kind of present? Here are five finance-related gifts that are just the right fit for everyone on your holiday giving list.

For Your Adult Children: Time with a Pro

In a recent Millennials’ Readiness for Retirement study, conducted in 2021 by the Center for Retirement Research, researchers found that millennials had a lower net wealth-to-income ratio between the ages of 28 and 38 compared to that of previous generations. If you have a millennial in your life, a gift certificate for a financial planning session now could pay major dividends in their retirement years.

For Your College-Bound Kids: A 529 Savings Plan

Help your favorite future scholar cover the cost of their college education by starting a 529 plan. 529 plans do not have annual contribution limits, but contributions to a 529 plan are considered completed gifts for federal tax purposes, and in 2022 up to $16,000 per donor, per beneficiary qualifies for the annual gift tax exclusion. Excess contributions above $16,000 will count against the taxpayer’s lifetime estate and gift tax1 exemption amount ($12.06 million in 2022). Your financial advisor can help you decide between a college savings plan, which is an investment in future educational expenses, and a prepaid tuition plan that allows you to prepay tuition at current rates.

For the Teenagers in Your Life: Stocks

Instead of buying the newest sneakers or electronic gadgets, consider gifting stock in the companies that make those products. One of the more exciting financial gifts for kids, stocks allow teens and young adults to actually own a part of the brands they adore. And thanks to the value of compound interest, a small investment now can pay dividends in the future — though recipients will have to pay taxes if the stocks are sold at a gain in the future. 

For the Littlest Investors: Savings Bonds

Remember when your grandparents handed out savings bonds for special occasions? These old-school financial gifts for kids have never gone out of style. The government-backed bonds come in denominations as low as $25, and while there isn’t a huge financial return on bonds — the Treasury Department notes that bonds earn annual fixed rates of 0.10% — bonds are a valuable investment gift for a child that can help teach them about savings and investing. You can purchase bonds through the U.S. Department of the Treasury

How to Buy Savings Bonds for a Child

While the bulk of financial gifting is done online now, Series I savings bonds are available in paper, but only by using your IRS tax refund. If you buy paper savings bonds, they will be mailed to you so you can give them directly to your littlest loved ones.

For the Person Who Has Everything: A Charitable Donation

In lieu of a fancy candle or generic gift card, make a donation to their favorite charity. You can ask the nonprofit organization to send a note to the recipient letting them know that a donation has been made in their name. There’s another reason that 30% of annual donations are made in December: You’ll get a tax deduction1 for your donation, making it a gift for you, too.

Talk to your Farm Bureau agent about financial gifts that recipients will treasure long after the holidays.

Neither the Company nor its agents or advisors give tax, accounting or legal advice. Consult your professional advisor in these areas.

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