Kids and grandkids have bought themselves everything that they need except that they can’t buy themselves money … so that is all they want for Christmas. Is there hope of going beyond? Here are a few ideas:
1. Give investments. Minors cannot own investments but you can open up and add money to a UTMA/UGMA account where you are the custodian of the account until they are the age of majority. You can add money whenever you want but they own the investment – not you. You can’t get mad at them and decide to take it all back. It will give you an opportunity to discuss the long-term power of investing and compounding. You can even tell them that you will match them dollar-for-dollar. If they add $100 to the account, you will add $100. Get them excited about investing when they are young.
2. Give adventures. Money can change people and not always in good ways but adventures make lifelong memories, build character, bring generations together. Go to Disneyworld, rent a house in Arizona, spend the weekend in the Dells – invite kids and grandkids and play together. It is a present for them that is also really for you too. These may become the best memories of your life.
3. Give inheritance. Okay so this is really the same as giving cash but if you are going to give money, be creative not predictable. Give one year and not the next. Give in January not December. Give different amounts each year. Basically, whatever you give make sure it is still considered a gift and not money that is expected. Giving is positive but enabling is often not. Remember that each person can gift $15,000 each year to each person without having to file a tax form stating that you gave the money.
By Cammie Humke, Investment Adviser at The Humke Group, Inc
Located at 555 S. Randall Rd in St. Charles, IL, phone 630-584-7343
The Humke Group, Inc is an independent firm offering securities through Summit Brokerage Services, Inc., Member FINRA/SIPC. Advisory Services offered through Summit Financial Group Inc., a Registered Investment Adviser. Opinions expressed are that of the author and are not endorsed by the named broker/dealer. All information herein has been prepared solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy.