Money- it's one of those things that everyone needs, but some feel uncomfortable giving as a gift. Sure, you can buy a money holder card, slip some cash inside, sign it and be done. But if you're more of a thoughtful gift giver, here are five handy options that might just fit the bill. After all, the gift of money never goes out of style, fits all tastes, sizes and might just be the gift that keeps on giving.
The Budding Scholar
If you're a long-term planner, or love the power of accumulated interest, you might want to consider donating to the newly-minted parents' child's RESP (Registered Education Savings Plan). Saving up a for a child's post secondary education is no small feat, so a tax-free savings option with a higher interest rate is one sure way to get there safely and securely. You might consider gifting a sum towards a Meridian RESP Mutual Fund to help build your budding scholar's educational fund quicker thanks to the higher earning potential of favourable interest rates. With the principal 100% guaranteed, an RESP is a solid bet, even for risk-adverse investors. And the best part? You can gift future sums for the child's birthday or any other special occasion.
The Future Artist, Athlete or Musician
Oftentimes, gift-givers want to know what their niece, nephew, grandchild, or god daughter might want for their big day. Parents and care givers: why not suggest donating to those piano, art or athletics programs your child wants to join so badly? Investing in education, including the extracurricular, is never wasted money. Knowing another language, a sport, an instrument or another skill is a cultural currency that opens doors and expands the mind.
Quick Turn Around
Let's say you'd like to gift money with the added bonus of interest, but you know your recipient may need that money in the short term. With a minimum investment of $100, the GIC's are eligible for registered and non-registered plans alike. And if you're not sure which option is best, you can always meet with a Meridian advisor to purchase the GIC that's best for your lucky recipient.
Student loans are a reality for a lot of new college graduates. You might consider loaning your child a lump sum to help whittle down school loans faster, while you set the ground rules for repayment. That way, they pay you back and get their careers on track with a little flexibility thrown in for good measure.
The Tax Free Gift
And finally, consider setting up a TFSA (Tax Free Savings Account) as a gift in lieu of cash for the older teen as they approach adulthood. This could be the gift that keeps on giving since the money invested into a TFSA grows, tax-free, and is available to those over eighteen. It’s a particularly good choice for the long-term and teaches young adults about money. It could set them up for a house down-payment or even for their retirement further down the line. Meridian offers TFSA options on all saving/deposit options in addition to high interest savings accounts and 5-Year Ladder GIC strategy options, depending on what you prefer.
Any way you slice it, it makes good, common cents to invest in those you love.