Christmas is coming, and for a lot of people, this holiday is the season of giving. If you want to spread love and cheer this season, you might already be planning the gifts you want to get for your loved ones.
If you want to offer something unique and unconventional, you can send them financially responsible presents to help them save and earn more. Get creative gift ideas in this short guide to help your family members make better financial decisions next year.
Financially Responsible Gift Ideas
The International Federation of Accountants (IFAC) site shows that poor financial literacy cost US adults roughly $436 billion in 2022. The figure underscores the importance of knowledge when it comes to handling finances.
To help address the financial literacy problem in the country, you can help your family spend and handle money responsibly. Here are some financially responsible gifts you can send your loved ones:
Spending-based board games
If you have kids or young siblings, you can create financial awareness by playing financial literacy board games with them. Through this fun activity, children can learn the basics of managing personal finances properly.
Remember that most schools still do not teach children about money management. Today, this skill is something you learn through home-grown, daily practices and observation.
You can introduce the concept of financial management to young children by playing fun board games associated with money. The Game of Life, Monopoly, Cashflow, and Payday are only some of the most popular titles you can buy for your kids or siblings. By playing these games with them, you are letting them experience a sense of freedom and financial independence.
When playing the game, set the right example by playing it properly and following the rules. Remember that young minds are impressionable, and they will learn from your experiences as well.
Cash gifts are easy to spend, especially if you give them to kids. Instead of going for this option, you can contribute to their college tuition. This way, you can minimize their debt once they start their college education.
If your child already has a 529 college savings account, you can fund it with a cash infusion. By contributing a small amount every year, you can save a sizable sum by the time they have to go to university.
Wealthy family members with relatives who have already been accepted to a university could also write a check directly to the college to cover tuition. This move can have tax benefits to the donor, so it can be an appealing option.
However, if you pay tuition to the school but do not cover the full fees, it may negatively impact your child’s ability to get financial aid in the future.
Books about saving money
You can help promote financial literacy at home by giving books about investing tips, real-life case studies, and different ways to plan for a secure future. Another option is to share your most visited finance blogs and inspire dialogues to encourage family members to read such content.
A subscription to a reputable finance magazine can also be a wise choice if you want to encourage your siblings or parents to learn more about financial stability. This way, they can understand the different ways to manage their hard-earned money for a better future.
There are various books and digital content discussing money-saving strategies that can help your loved ones save more. Through these resources, your family can learn the importance of investments, the benefits of applying for a personal loan, and other ideas that can help inspire financial growth.
Mutual fund investment
One unique gift you can give a family member is a mutual fund investment, which allows them to invest in equity or debt categories. Through this investment, they will have an effective way to support their long-term financial goals.
A mutual fund investment can be a promising financial plan because it allows you to plan depending on your investment objective. You can invest in various categories and subcategories like wedding expenses, higher education, or a business idea.
Additionally, starting this plan can also be fulfilling. A mutual fund investment can help multiply wealth while countering inflation over time. The following points are other advantages you can enjoy by starting a mutual fund investment:
- The investment offers diversification
- It also provides innovative plans and services
- A professional fund manager and an investment team manage the fund
- It facilitates liquidity
Making Responsible Financial Decisions This Holiday Season
Saving during the holiday season can be easier said than done. To help you in your effort to make better financial decisions, we outline various tips and tricks to help you save money this holiday.
- Set spending limits – When shopping, you must limit what you buy to what you can afford.
- Use credit cards wisely – Know the terms of your credit card plan and be sure to know what it may cost you.
- Set a realistic budget – Set a budget that suits your earnings and refrain from buying expensive gifts to compete with other family members who are earning more than you do.
- Plan early – Make a shopping strategy and save for it in advance so you enjoy the festivities without stressing and spending more than you can afford.
- Prioritize experiences – When thinking of gifts, prioritize quality time with your family and friends over material presents.
- Do not buy a gift for everyone – If your list of people to shop for includes over five people outside your immediate family, start crossing out names.
- Reassess your financial goals – The holiday season can be the perfect time to revisit your financial goals and ensure you spend money only on the most crucial purchases.
- Collect coupons – Before you start shopping online, hunt for coupon codes to get discounts.
- Avoid impulsive shopping – Always take your time to research what you want to buy to avoid impulsive purchases.
- Give something personalized – Sometimes, a thoughtful gift can be worth more than an expensive present that the recipient will never use.
- Try group volunteering – Instead of organizing an expensive party, you can help your friends save money by spending time volunteering as a group.
Encourage Financial Responsibility for the Whole Family
Remember that the holidays are for connecting and taking a break from the busy reality of life. You can take this time to take a financial reset and help your loved ones start over, too.
You can share a valuable gift to help your family dream big, think of new possibilities, and develop healthier financial habits.