With the holidays fast approaching, the topic on some folks minds is Christmas gifts.  Choosing the perfect gift for each family member can be a daunting task.  This year instead of the typical Christmas gifts, here are some alternatives.  You can use your gift giving as teachable moments for your children and grandchildren instead of giving mounds of toys.

Start a college fund for your kids or grandkids.

The gift of knowledge is something that every child needs.  College is expensive and takes years of saving to reach the goal of tuition money.  You can use a 529 plan* to begin saving for their educational future.  You can add to this account every birthday and Christmas. The dollars you invest for their college education is invested in after tax dollars. However, if used for educational expenses, the earnings are tax free. Give the gift that keeps on giving.

Open a joint brokerage account.

Next time you go to see your investment advisor, take your child or grandchild with you.  Let them learn about different investments.  Begin the discussion on savings accounts, checking accounts, investment accounts, and retirement planning.  Sparking the interest at a young age will show them how money can build over time.

Teach basic money principles using books and board games.

I spent many evening with my family growing up playing monopoly.  Who knew family game night was a key to future success?  Learning how to negotiate, strategize, buy property, and avoid bankruptcy by managing your income, is something every young person will encounter in the future.  There are many great books that teach children, teens, and young adults about money, investing, and entrepreneurship. Encourage them to get smart about their money at a young age.  They will be glad you did!

Are you interested in the gift of investing?  For more information go to www.waterstonewealth.com.

Melanie Hasty-Grant, Managing Principal at Waterstone Private Wealth Management, and Experienced Licensed Professional Counselor. Securities offered through Cetera Advisor Networks LLC, Member FINRA/SIPC. Investment advisory services offered through CWM, LLC a Registered Investment Advisor. Cetera Advisor Networks LLC is under separate ownership from any other named entity.

*Prior to investing in a 529 Plan investors should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.