Graduation season is here, a time brimming with pride and anticipation as the students in our lives prepare for their next big adventure. When thinking about heartfelt congratulations, consider giving a gift that truly empowers their future: a strong financial foundation. Whether they're college-bound, entering the workforce, or charting their own course, providing your graduate with the right financial tools and knowledge is one of the most valuable investments you can make in their future.
Here are some money-minded graduation gifts to consider:
- Financial Wellness Books
Equipping your graduate with the knowledge to navigate the world of personal finance is a gift that keeps on giving. Several excellent books cater specifically to young adults. Titles like "I Want More Pizza" offer engaging introductions to financial concepts, while "How to Adult: Personal Finance for the Real World" provides practical guidance on budgeting, saving, investing, and avoiding debt. Explore curated lists of great financial books for teens and 20-somethings to find the perfect read for your graduate. - College Plan Contributions
For graduates continuing their education, a contribution to a 529 plan is a powerful way to support their academic journey. This tax-advantaged savings plan lets funds grow tax-deferred and allows for tax-free withdrawals for qualified education expenses like tuition, fees, and college room and board. Even a small contribution can make a difference in easing the financial burden that higher education can have. You could either set up a 529 plan for your graduate or contribute to their existing one. Online services like Ugift allow 529 plan account owners to generate a link that they can send to friends and family who wish to contribute to their plan. - Retirement Plan Contributions
It might seem early to think about your graduate’s retirement, but the sooner they start saving, the more wealth they can build over time. An IRA, or Individual Retirement Plan, allows your graduate to save for retirement with tax benefits. You can help them open an IRA or gift them money to place in an existing IRA. It’s even possible to set up a custodial IRA for a graduate who is under 18 (or 21 in some states). - High-Interest Savings Accounts
Graduation often brings monetary gifts from family and friends. Help your graduate make the most of this generosity by showing them how to open an online high-interest savings account. High-interest online savings accounts like those offered by Bank5 Connect feature higher-than average interest rates, allowing for long-term savings growth. Plus, because these accounts are offered by online banks, your graduate can access cash when they need it, no matter where they’re planning to attend college or move after graduation. - A Certificate of Deposit
Another way to help your graduate get a jump start on a bright financial future is to help them open a certificate of deposit, or “CD”. A CD is a type of savings account where money is deposited and earns interest at a set rate for a specific period of time – known as the “term”. Once the CD term is over, the CD has “matured”, and the funds can be withdrawn along with the interest earned. Because the funds in a CD cannot typically be withdrawn before maturity without a penalty fee, a CD can be a great way to put money aside and let it grow without the temptation of withdrawing it and spending it too soon.
As your graduate stands on the cusp of new beginnings, giving them the tools and knowledge to build a strong financial future is a gift of lasting value. With a financially focused graduation gift, you're not just celebrating their achievements, you're investing in their long-term financial security. Ready to kickstart your graduate's financial journey? Learn more about Bank5 Connect’s high-interest savings accounts and CDs.