Insights

Posted on July 24, 2017

Gifts for New Grads to Jump Start Their Future

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Published by Taylor Financial Group for Women

Are you still struggling to figure out how to best reward your new college graduate (child or grandchild)?  We call these folks “early accumulators” and we think the best gift you can give them is teaching them how to save and invest their money.  The second-best gift you can give them is money to jump start them on their path toward building their financial future.  Here are a few great gifts ideas!

The Roth IRA

Give your child or grandchild money to start funding a Roth IRA.  As long as they’re working and earning at least $5,500 a year, they can contribute up to $5,500 a year into a Roth.  A recent Kiplinger article pointed out that if a college grad starts saving $5,500 per year into a Roth IRA at the age of 22, and then increases that amount to the allowable $6,500 at the age of 50, she could save up to $1.5 million in tax-free money by the time she is 65.  Now, that’s a gift!!!

Student Loans

Student loan debt can be overwhelming for graduates and can take many years to pay off.  Helping your recent grad pay off some student loans is a gift she would no doubt be grateful for.  And you can feel good about the fact that you will be setting her up on a faster track to a stronger financial future.

Professional Starter Kit

This gift idea is fun and different!  If your recent grad is starting her professional career, she probably needs a new wardrobe to fit the part.  Help her get started by helping fund a new wardrobe.  To make it even more fun, you can even offer to make a day of it and take her on a mini (or big) shopping spree, where you can be her support financially and fashionably.

Sure, there are tons of things you can give college grads to congratulate them for their hard work and achievements.  But, there’s nothing better than helping them achieve financial independence.

We have helped many clients with intergenerational financial planning and investing, and we can help you too.  Contact us today if you need guidance to help your child or grandchild start building their future.

 

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