With Christmas approaching I wanted to try and relate something in the world of finance to the festivities of the season. I thought I would give you an alternative present list. What follows is a list of Christmas presents based around finance/money which would make a lovely present for anyone. When I say anyone – most of them seem to fit most nicely for a parent to a child or for a grandparent (or other relative) to a child. I wouldn’t recommend that you wake up on Christmas morning and present the gift of a stakeholder pension to your other half!
Gift to Charity
This is something which has increased in popularity in recent years and is a fantastic way of giving a gift to someone who already seems to have everything they need. What are they passionate about? What has affected their lives in recent times? Gifts to charities which attract gift aid turning £1 into £1.25 can really show more thought than you may think and as we know, there are many deserving charities from Cancer Research through to smaller local hospices.
Regular Cash Savings Bond for Children
Rates for children are often superior to those on offer to adults for regular savings up to a set subscription limit. Many banks, including Lloyds, Halifax and the Skipton BS, (other banks are available) all pay excellent rates at nearly double those available to adults. Remember that tax rules stipulate that a child can only earn £100 worth of interest from money given by each parent. Also it should be remembered that in most circumstances the child will get access to that money at age 18.
Stakeholder Pension for children
Chances are that your children and grandchildren will not get access to the same final salary pension schemes that you did during your lifetime. As well as this they will have to try and save for a deposit on a house and numerous other calls on their income as they enter working life. Pensions will probably be left at the bottom of their ‘to do’ list. Evidence clearly tells us that the longer your money is invested the bigger the impact on growth. Start something for them early and in many years in the future they might just think it was the best Christmas present they ever received!
Children can shelter £3,720 into a Junior ISA each year. This, like the adult version, can be placed into either stocks and shares or cash. The age of the child will determine which is the best option to go for but you should seek advice if you are thinking of investing in stocks and shares. Again the child will have unrestricted access to this at age 18.