Gifting

noffgurl · February 2015

I want to get my nieces and nephews meaningful gifts for their birthdays/Christmas. I don't really want to just buy the new toy that they won't want in a few months. I want to do something that will last and grow and help give them some security. My thoughts are stocks, 529's, trust, savings, precious metals, something of this sort. What would you suggest? None of them have any trouble getting clothes, toys, and books. I would like to do something different.

Erikan73 · February 2015

My mom use to give my nieces and nephew savings bonds and the something small to unwrap. They didn't realize what it was until they were older & went to go cash them in and realized how significant of a gift it was. My niece has now started savings bonds accounts for her two girls and is asking for the adults in the family to contribute to that instead of tons of toys for their birthdays and christmas. They have a small house & the girls really only need so much. Between Parents, grandparents from both sides of the family and then great grandparents from all sides of the family, that can be a lot of gifts very quickly. This will give her girls something to start off college with. And like you said, a gift like this is something that will help them long term and not just a toy that will broken or forgotten about in a few months. This is also the type of gift you can get more people to contribue to and help their future since they are in good shape now. Even if they don't need it for college, they can use the money for a car or towards a house one day.

hoffse · February 2015

If/when H's brother finally has kids, we'll probably contribute to a 529 for them each year (plus something small to open). There's no question that any kids they have will be college-bound, and we're happy to support education.

noffgurl · February 2015

Is there a way to do any savings accounts or really anything except cash (I don't want to give cash) that I don't have to have their social security numbers for? I'm sure my siblings will tell me but I feel weird even asking.

simplyelise · February 2015

My grandparents gave me a $50 savings bond (almost) each year for my birthday. I'm 25 and right now the cash out value is under $1500. So while it's very generous and I've always kept them back as my super emergency, emergency fund, the return on investment is very low.

If I were you, I'd look at the 529. If they are currently earning an income, I'd look at a Roth IRA for them. I really wouldn't bother with single stocks or precious metals because those are so volatile. Depending on how much you want to gift, a mutual fund would be a better and more stable option.

noffgurl · February 2015

simplyelise said:

My grandparents gave me a $50 savings bond (almost) each year for my birthday. I'm 25 and right now the cash out value is under $1500. So while it's very generous and I've always kept them back as my super emergency, emergency fund, the return on investment is very low.

If I were you, I'd look at the 529. If they are currently earning an income, I'd look at a Roth IRA for them. I really wouldn't bother with single stocks or precious metals because those are so volatile. Depending on how much you want to gift, a mutual fund would be a better and more stable option.

They aren't working, I have 2 six year olds, an 8 year old, 2 eleven year olds, and a 13 year old. I just feel weird asking for their ssn number to set up the accounts.

hoffse · February 2015

noffgurl said:

simplyelise said:

My grandparents gave me a $50 savings bond (almost) each year for my birthday. I'm 25 and right now the cash out value is under $1500. So while it's very generous and I've always kept them back as my super emergency, emergency fund, the return on investment is very low.

If I were you, I'd look at the 529. If they are currently earning an income, I'd look at a Roth IRA for them. I really wouldn't bother with single stocks or precious metals because those are so volatile. Depending on how much you want to gift, a mutual fund would be a better and more stable option.

They aren't working, I have 2 six year olds, an 8 year old, 2 eleven year olds, and a 13 year old. I just feel weird asking for their ssn number to set up the accounts.

If they "earn" money through doing chores, then they are working. If your siblings have to file a tax return for them, then they are working.

My parents opened a Roth for me when I was 8 years old. My parents paid me to help with yard work. I sold blackberries to neighbors from our blackberry bush. As I got older I helped my dad with his research/data, and I got paid for babysitting. My parents very carefully kept track of how much money I made each year for any and all of these activities, and they matched it in my Roth account. I had no idea the account even existed until I was in college. When they turned it over to me it was worth about $8,000. Not bad for doing odd jobs. I never held any regular job until I was in college.

You can contribute to 529 accounts without asking for their SSN. Your siblings will have to set up the account though and give you the account number.

short+sassy · February 2015

My aunt bought a $75 savings bond for me when I was born. Then my mom put it in her safety deposit box and totally forgot about it.

Fast forward 20 years. My mom was cleaning out the deposit box and came across it. She gave it to me two weeks before I was going on my first cruise. It was worth a few hundred bucks by then and really came in handy! A fun surprise.

But I agree with the other PPs, that a 529 account is probably the best way to go.

Gifting

Re: Gifting

Choose Another Board

Search Boards