Outside the (cash) box: Savvy financial gifts for grads
Posted
Jun 09 2008, 03:09 PM
by
Karen Datko
Cash is great, but consider other gifts to start the new graduate on a path to financial health that aren't so easy come, easy go.
So says Money Smart Life. "The problem, as I remember it, is that cash is a hard thing to hold on to once you're out of school and thrust into the job hunt or working world," he writes in a post called "Gift ideas for college grads for a financial head start." We particularly liked his suggestion to set up an investment matching program.
Offer to match part or all of the money your grad puts into an investment account or Roth IRA. "My parents did this for me and I invested the maximum amount that they'd match," he says.
You can also set up an emergency fund. Money Smart Life explains how you can create an online savings account that rewards both you and the grad with a signup bonus.
Among his other ideas: Pay for the grad's short-term health insurance until she or he is eligible for a workplace plan. Give a gym membership, because good health is one of the foundations of financial security. "Plus, the gym is a great place to socialize," he says. "Maybe they'll meet their future spouse there. Two people paying rent makes housing much more affordable."
Another one we like is becoming a financial mentor, if you have good advice to share. He says, "You've already traveled the financial maze and have many of the answers they'll be looking for."
