Money-minded gifts for high school, college grads
Graduation season is in full swing. Have you bought all your gifts?
A check and a card are certainly customary and easy, but also a bit boring. Portable speakers, a Keurig or a hot dog cooker for the high school grad who's going to college? They aren't what you had in mind either.
Something else to consider: Gifts that might appreciate over time or jumpstart a better financial future. They might provide genuine appreciation from the new grad in the years to come.
Here are four gift-giving ideas with a financial twist that could definitely impact the future well-being of high school and college students in the Class of 2019.
or two with a fee-only financial planner, which might cost anywhere from $100 to $300 an hour. This could be money well spent for a college graduate breaking into a new job, paying rent and starting repayment plans on student loans.
If you don't feel comfortable talking to your twenty-something about creating a budget, socking money away and enrolling in the employer's 401(k) retirement plan and stock purchase program, turn it over to a professional.
Pay for an appointment
or contribute to a 529 college savings plan. Gift registry sites, such as the GiftofCollege.com, allow
Help pay off student loans
family and friends to give money that can go toward paying off student loans or contribute to an existing 529 plan.
There are several ways to do this, including transferring existing shares into an account for the recipient.
One of the easiest ways is to buy fractional shares of companies your graduate may be familiar with, such as Apple or Facebook.
At Stockpile, for example, people can buy a fractional share of more than 1,000 stocks and exchange traded funds for as little as $5, with no transfer documents or additional forms necessary.
You can give a gift card redeemable for stock, and the recipient can set up an account to monitor the shares and make trades.
Think of it this way: In addition to the stock, you're also giving the graduate an education about investing.
Give stock.
About 60 percent of the approximately $5 billion that people spend on graduation gifts will be money, according to surveys.
If you still prefer writing a check or handing over a $50 bill, consider a little creativity. My neighbor, for example, used her considerable origami talent to fold a crisp bill or two into the shape of a mortar board or an eagle.
Or you could try cash and a book such as “Bad With Money,” by Gaby Dunn, the “O.M.G. Official Money Guide for College Students,” by Susan and Michael Beacham, or “Girl CEO: Priceless Advice from Trailblazing Women,” by Ronnie Cohen and Katherine Ellisen.
Cash is king.
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