According to US News, “Even a small [financial] gift now can make a significant difference by the time [children] go to college, buy their first car, or even help with a house down payment.” These finance-related baby gift ideas, then, make perfect dollars and sense.
529 College Savings Plan
“When you save for education, you’re starting a conversation in your family of [its] importance,” says financial planning expert Deborah Goodkin.
Arrange for a 529 account to be opened in the parents’ or your name, with the child listed as the beneficiary. Even the most modest contributions will compound and offer tax benefits to the account’s custodian(s) in the meantime!
Stocks
“[Babies] can afford the risk associated with the stock market and benefit from the long-term returns,” says certified financial planner Laura Cuber. To avoid the risk associated with investing in only a single company’s future performance, diversify the portfolio over time. How?
By opening a brokerage account and “buying low-cost (exchange-traded funds) or mutual funds" on behalf of the child, advises US News.
Real Jewelry
It’s customary in a number of cultures throughout the African Diaspora to gift jewelry made of precious materials like gold that hold both monetary, sentimental, and cultural value long-term. Consider this gift as a mark of identity AND a smart money move.