When you’re young, you can get away with handing out cards drawn with colorful crayons as your go-to gift, but when you get older, your shopping list grows, and you have to learn how to stretch your budget. As we age, we have more and more relatives and friends that we exchange gifts with, which means more and more money that we need to account for in our retirement budgets. So, when your children and grandchildren start handing out their lists, it may be a good time to prepare some financially savvy gift ideas.
If one of your grandchildren does not yet have a savings account, now might be a great time to open one and start teaching them the importance of saving. Part of your gift could even be a contribution to help start the account, giving them a gift that will keep on giving. You could also purchase stock for your loved ones. This way you can communicate valuable lessons about investing and hopefully watch your gift grow together.
Giving gifts towards college or helping pay off student debt can really help your kids or grandkids out financially. Knowing that you are helping them with some of their financial burden can help brighten the holidays for everyone, and if it is something you might consider doing anyways, you will save by combining it with a holiday gift. Giving money with a purpose is a good way to know that your money is going to something good and that your gift is not wasted. Also, you have the power to choose the amount that fits your budget!
Since the holidays are all about giving, it is a great time to look at donating to charity. You can give to charity under someone’s name as a gift or encourage them to donate clothes or food to a local shelter. There are tax efficient strategies for charitable giving as well. Another idea is to volunteer together, it’s free to help serve at a soup kitchen or spend time at an animal shelter and can build priceless memories.
Lastly, be sure to collect rebates on gifts you buy. Some sites like Ebates or Upromise give small amounts back for certain things you buy. These small savings could lead to larger returns that could help offset the costs spent on holiday gifts.
Overall, it’s important to plan early for your holiday spending and make smart financial decisions to avoid overspending. When you’re on a fixed income, the holidays can seem overwhelming, but making money smart decisions and giving meaningful gifts can ensure you are confident with you gift giving. For advice on all thing’s lifestyle and financial, click here to schedule your comprehensive financial review. The professionals at Epstein & White can help you figure out a financial plan that works for you.