Knowledge Hoop

Christmas is less than a week away.  Although it’s celebrated on the same day each year, somehow it still sneaks up on us.  If you’re like me, there may be a few people on your Christmas list that you are challenged by – you simply don’t know what to buy for them.  Instead of buying one more sweater, scarf, or toy, consider giving a financial gift that will continue to give well beyond Christmas day.  A few suggestions include:

• Purchase a savings bond.  While it is not an aggressive or high yielding investment option, it does earn interest.  Additionally, it is exempt of state and local taxes, and federal taxes are deferred until the bond is redeemed.  In the book Rags to RICHES, we stress the importance of practicing wealth building behaviors (i.e., saving and investing).  Savings bonds will not likely make you rich, but they do promote wealth.  Remember, small changes can create big results
• Buy a share of stock.  What does the person love?  Are they avid patrons of Starbucks or McDonald’s?  A common recommendation when purchasing stock is to buy stock in what you love or support.  To purchase a single share, visit www.giveashare.com
• Give a financial book or a subscription to a financial magazine or newspaper.  Knowledge is power and you can’t do what you don’t know.  You also don’t know what you don’t know
• Contribute to a child’s 529 education savings account.  This will require some coordination with the child’s parent, but it’s worth it.  A 529 education savings account is a tax deferred investment account that is designed to help families save for future education expenses.   If the child doesn’t have one, consider giving an initial investment.  Many times we give children toys or things that may keep their attention for a short while, but in all likelihood, before the holiday break is over, the toy is broken, lost, or put aside.  Invest in a child’s future.  They may not fully understand it now, but they will thank you later
• Buy a gift certificate for their favorite charity.  Is the person on your list passionate about a cause?  Perhaps they have been personally impacted by cancer.  Think about what’s important to them.  If you don’t know, ask.  Gift cards for charitable donations can be purchased through www.charitygiftcertificates.com

Christmas is the celebration of Jesus’ birth.  The practice of giving gifts can be traced to the gifts that the three wise men gave to Christ.  Although each had a significant spiritual meaning, they were also very valuable.  As we make a mad dash to finalize our preparations for the holiday, consider giving a gift that keeps on giving.