- my iParenting
- quick clicks
- article archive
- expert q & a
- community & groups
- research baby names
- prepare a birth plan
- content channels
- ip channel rss feeds
- read birth stories
- read parenting stories
- recommended books
- e-newsletters
- safety recalls
- ip diaries
- ip store
- mom of the month
- dad of the month
- editor's letter
- letters to the editor
From Our Sponsors
- e-newsletters
- Sign up to receive our free weekly e-newsletters
- award-winning products
The iParenting Media Awards program helps parents find the best products for their families.
The Gift That Keeps on Giving
Financial Gifts for the Future
By Shel Franco
When most babies are born, their parents can expect to receive a wealth of gifts on their behalf. Teddy bears and adorable clothing are always welcome, but baby items are quickly outgrown. Why not give something that will be appreciated for years to come? Rather than think of the present, you might consider the future and give a gift that will promote financial independence.
We're often of the belief that the best gifts for our children are the ones they yearn for the most, but what happens in a couple of years when that Playstation is obsolete? Fortunately, there are ways of giving that will last longer than the latest toy or game trend.
Sharon Tabor Warren of Amherst County, Va., likes to give savings bonds on behalf of her business to her clients' new babies. Warren, a tax accountant, feels that while parents are generous when it comes to giving Christmas and birthday presents, they don't do enough to provide for a child's future. "People are much too enmeshed in material things," she says.
A savings bond makes a thoughtful gift for any occasion. A Series EE can be purchased at the bank or online at Savingsbonds.gov for a minimum of $25. To keep up with inflation, the interest rates change every six months.
If the savings bond is to be used for college, the interest is 100 percent tax free. To take advantage of the tax-free college savings, the savings bond must be in the name of the purchaser and not the intended child. Because it takes a few weeks to receive your bond, a gift certificate will be immediately issued so you'll have something to present to the recipient.
Tim Wicinski of Frederick, Md., cultivated an early interest in the stock market thanks to gifts of single shares of stock from his grandfather. Every Sunday he would get the paper and write down the stock prices and make little graphs. Since then, he's bought savings bonds or single shares of stock for many of the children in his life.
A single share of a kid-friendly stock such as Disney or Mattel is a great gift and is not too expensive. In many cases, you'll only spend between $25 and $50. One Share of Stock, Inc.