Unique Graduation Gifts - Think Money

By Jennifer Peek

I know, I know. Money - cold, hard cash - is a tried and true graduation gift and not so unique. But that's not the kind of money I'm talking about. Why not consider money-related gifts that can keep on giving? Whether it's a high school or college graduation, any of these ideas can pay dividends for years to come.

• An hour of financial planning. There are a number of financial planners that are fee-only planners. These planners charge only for the time they spend with you. No ongoing monthly fees or transaction charges. Just a solid plan. And many of them are focused on helping people move from one life stage to another. Graduation is a huge milestone - and might just be the best time to get a first financial plan in place. High school grads can see how time can work for them - and a mountain of student loans against them. College grads can look at new job benefits, develop a plan to pay off students loans and get that first house.
• A contribution to a Roth IRA. The recipient must have earned income to be able to have a Roth (or any other) IRA, and the contribution cannot be any more than that earned income. But if that test is passed, a Roth IRA can be a great start for anyone. The money can grow for almost forever since there are no required distributions. And since it is opened with after-tax dollars, you are not saddling the graduate with a future tax bill.
• Enrollment in a dividend reinvestment plan. Do you or the graduate have a favorite stock that offers a dividend reinvestment plan (DRIP)? If a Roth IRA doesn't work for you, consider buying individual stocks that pay dividends and allow them to be reinvested. Individual stocks are more tangible and easier to track than mutual funds. And DRIPs can help the investment continue to grow without putting in more money (assuming the price goes up!).
• A contribution to a 529 savings plan. Such a contribution may be best suited for high school grads on their way to college but can also work for a college grad that wants to go on to more advanced degrees. It is an investment in their future that can help them avoid or limit the debt that can come with it.
• A charitable contribution in the graduate's name. Does the graduate have special interests or charities that they value? Consider making a contribution in the graduate's name. It's a very personal gift that keeps on giving and not just for the charity. It is a great way to introduce the recipient to giving as a way to "spend" money.

These are just some ideas of unique graduation gifts ideas. What ideas do they spark in you?

Jennifer Peek is an CPA and mother of two. She writes about all aspects of kids and money at her website http://www.money-and-kids.com Subscribe to her free newsletter at http://www.money-and-kids.com/subscribe.html