With American Thanksgiving in the rearview mirror it’s time for all of us to gear up for holiday gift giving. In the first of two parts (second will appear Monday) we help advisors with the process.
The first idea is less about your client and more about their children.
A recent TD Bank survey found that almost 50% of parents or grandparents responded that they have bought an investment product at some point for a child, often as a gift for the holidays. Almost 90% of those surveyed believe children should be exposed to personal finance by their mid-teens.
Financial literacy is a big issue these days.
It definitely makes sense for adults to proactively teach their children and grandchildren about managing money. One of the ways to do this is by purchasing a specific investment as a gift and using it as a tool to educate them.
TD Bank suggests that an RESP is an ideal gift for a child because the government provides a $500 grant on the first $2,500 in annual contributions over the first 17 years of a child’s life. That’s $8,500 in government money towards a child’s future post-secondary education.
WP can’t speak to the rules involving advisors gifting to the children of clients but certainly there has to be a way to accomplish this.
Whether we’re talking an RESP, mutual fund or shares in a company such as Disney, it’s never too early to help clients help their children learn about money. While it’s not as nice as a bottle of fine wine, it’s definitely more thoughtful.
On Monday we let you in on our second gift idea. Enjoy the weekend.