Outside the (Gift) Box

Still looking for presents to give the kids on your holiday shopping list? Toys and electronics are all well and good, but for something more lasting, you may want to think outside the box and consider a financial gift.

Investments

A gift of stock or mutual fund shares could spur a lifetime interest in investing.

College fund

Contributing to a tax-favored Section 529 plan or a Coverdell education savings account (ESA) for the child is another option you might consider. (Before contributing to an ESA, ask us about the contribution limits.)

Roth IRA

A child who has earned income from a job or another source can have a Roth individual retirement account (IRA). These accounts offer several potential tax advantages and aren’t necessarily just for retirement, since contributions may be withdrawn anytime without tax or penalty. (Contribution limits apply.)