3 great gifts for the alumni who are interested in the money in your life

Smiling woman in college graduation cap and gown.

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Looking for a graduation gift that goes beyond a check?

the main points

  • An IRA contribution can build the foundation for a solid retirement plan.
  • Take learning outside the classroom with one of our favorite personal finance books.
  • Make it personal by arranging a meeting with an expert who can provide sound and objective advice.

Graduation gifts can be many things: a sign of support, an investment in the future, and even an educational experience. This year, do not accept cash on hand. Give your graduate a gift that will continue to give for years to come. Here are three great gifts to consider.

1. Give a boost to the IRA

Just because your graduate has earned an income doesn’t mean they can afford it in the future. The gift of a contribution to an IRA can go a long way toward a brighter retirement. In fact, with an assumed annual growth rate of 10%, an investment of $500 today can grow to more than $30,000 by the time the new graduate is ready to retire.

Do you want this money to go further? Consider saving it to a file Ruth Iran. With a Roth IRA, retirement savings can grow on a tax-exempt basis, which can save you thousands of dollars in taxes in the future. Most graduates are below the phase-out threshold for contributions, and may be at the lowest tax bracket in their working lives.

2. Giving the gift of knowledge

When your graduate is in learning mode, why not give him one last reading assignment? A personal finance book can help build strong financial habits when a graduate is on the cusp of their earning years.

Is your graduate interested in investing? check this out 6 great books for investors

Most personal finance books cover the basic concepts of financial wellness, from earning to spending and saving to investing. However, some books are more suitable for some readers. Your money or your life Written by Vicki Rubin and Joseph R. The white coat investor by Dr. James Daley. Alternatively, if your graduate is more interested in the behavioral aspect of finance, dollars and sense Written by Jeff Kressler and Dan Ariely Great read.

3. Bring in the experts

For something as personal as personal finances, it often makes sense to meet with a professional who can customize a plan according to the graduate’s situation. A financial advisor can provide a wealth of knowledge, from budgeting and investing to making the most of new employee benefits. For graduates entering the world of work for the first time, a roadmap to financial success can be an invaluable tool during a period of change.

Learn more: Best Financial Literacy Apps for 2022

If you already have a financial advisor, ask them to meet your graduate one-on-one to develop a financial plan. Other than that, there are many advisors who cater specifically to the needs of recent graduates by offering products such as the Graduate Financial Advisory Package. Expect to pay upwards of $200 per hour for these services, which can come in the form of pre-made or hourly billing arrangements. Entering the world of work is a great opportunity to build and hone financial skills, and financial planner advice can guide the way.

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