Three Christmas Gifts To Give Your Children That Keep On Giving

by Hank Coleman

Visit the Grand Canyon and give Christmas gifts to your children they will remember.Does your child need another toy this Christmas? If your children are anything like mine, they have far too many things in their room and in their lives. But, what are some Christmas gifts for children that last long after the holiday?

We are a consumer nation, and that love of stuff bleeds over into our children’s lives as well. So, what type of present do you get for a child for the holidays that seems to have everything?

It doesn’t help that times are tight and often Santa is broke this year. But, here are a few examples of Christmas gifts for children that will keep on giving to your kids long after the holiday season has ended.

529 College Savings Plan Contributions

Now is the perfect time for you or your parents to make a contribution to your child’s 529 College Savings Plan. This is one of those gifts that will continue to pay dividends for years to come. Parents are not the only ones who can contribute to a child’s 529 College Savings Plan.

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Grandparents, aunts, uncles and family friends can contribute to the plans as well. Contributing to a 529 College Savings Plan can help you save on your state tax bill in many instances if it is in the same state that you current live and pay taxes in. For example, Georgia taxpayers can deduct up to $2,000 each year from their state tax bill regardless of their annual income if they contribute to the GA Path2College 529 plan. Contributions to a 529 College Savings Plan can also be used in estate planning by reducing the value of your estate and subsequently reducing the bite estate taxes could take out as well.

Roth IRA Contributions

Many parents do not realize that they can contribute to a Roth IRA in their child’s name. If your son or daughter has an earned income, he or she can have a Roth IRA up to the contribution limit of $5,000 or the maximum of their earned income whichever is less.

You should keep detailed records about the earned income in case someone questioned the income your child earned. But, starting a Roth IRA while your child is young can be a difference between hundreds of thousands of dollars in retirement.

For example, if your child invested $5,000 from the age of 22 until 65 in a Roth IRA and earned an 8% annual rate of return, he would have a $1.6 million nest egg by the age of 65. If you invested for him from age 16 until 22 and then he picked up where you left off to continue like the example above, then that nest egg would have grown to $2.6 million instead.

Those extra years you invested for your child early in his life can equal a million dollars or more. That is an incredible Christmas present!

A Memorable Experience

One of the best pieces of advice that I ever received was to spend my money doing things instead of collecting things. We spend our entire lives collecting possessions. But, what do you remember about your life looking back?

It is the things that you do in life and the memorable experiences that you have. I have listed 100 goals that I want to accomplish before I die, and most of them are actually doing something or going somewhere.

Taking a family trip, even if it is just a local one, is something that your children will remember long after this Christmas ends. Together as a family you could be making memories that will last a lifetime.

There are plenty of other great ideas for Christmas gifts as well that would continue to pay dividends for years after this holiday season. You may also want to consider opening a simply savings account for your children as well.

There are several great types of savings accounts that banks offer specifically for parents to set up for their children. You could also teach your children about personal finance and the dangers of debt. I recently purchase Dave Ramsey’s Financial Peace Jr. kit for my eight year-old son.

What about you? Have you found great Christmas gifts for children this holiday season? I’d love to hear your thoughts in the comment section. Thanks!

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About Hank Coleman

Hank Coleman is the founder of Money Q&A, an Iraq combat veteran, a Dr. Pepper addict, and a self-proclaimed investing junkie. He has written extensively for many nationally known financial websites and publications. Hank holds a Master’s Degree in Finance and a graduate certificate in personal financial planning. Email him directly at Hank[at]

Hank Coleman has written 578 articles on Money Q&A. Learn more about Money Q&A on Twitter @MoneyQandA and @HankColeman.

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{ 4 comments… read them below or add one }

Bill at FamZoo

Love all three. My favorite is #2 – here’s some more info on that:


Miss T @ Prairie EcoThrifter

Great ideas. I think giving in a way that helps your kids future is awesome. They will appreciate it a lot when they get older and these gifts become handy. We will definitely do something similar when we start a family.


Marie at FamilyMoneyValues

I did match my kid’s salary when they were in their teens and twenties and helped them start an IRA. If you do this, you need to make sure that your kids understand the purpose and have the discipline not to raid the darned things!


SB @ One Cent At A Time

After reading through tons of posts on Christmas gift ideas, I think this one I liked most.


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