Being the season of giving and receiving gifts it is appropriate that we take a look at what we have been giving and what we have been receiving. Are all the toys or gifts that you gave to your loved ones still appreciated? Probably not. Are all the gifts that you received last year still appreciated by you? Probably not. But a small fortune has been spent on these gifts and now that money seems to have caused only a brief amount of joy. Is there not a way to make that joy last longer.



Ok your kid won't appreciate your investment fund for him or her today, but when it is worth thousands or hundreds of thousands of dollars, I am sure they will. The younger the age you invest for them, the more they will get. It will also help them understand the value of smart spending. Here are some ways to do this.

Open a Roth IRA ? Anyone who earns income in any means can take advantage of this. Contribute an equal but not larger amount to their IRA and let him enjoy the tax free growth.

Gift Stock ? You can either give stock of shares that you already own so that you don't have to spend to invest in future generations. Alternatively you can buy them some stock through cheap methods such as a dividend reinvestment plan or a direct stock purchase plan.

Pay for Saving ? If you want to help your kid to get on their own feet why don't you contribute an equal (or proportionate) amount to their savings from what they save. This will give them incentive to use their money AND your money wisely.

Life Insurance ? Another great way of allowing money to grow is to gift them a life insurance which will mature at a certain date or age. For a small investment you make they will receive huge dividends. If you don't want the liability to pay the premium every year you can also select plans which allow for one time premium. In the case of an uneventful death of your young one, it will also add as a cushion for you.

So think about gifting smart this season and reaping the rewards for many seasons for a change.