On a Day to Remember …. Give Meaningful and Memorable Gifts!

April showers bring May flowers . . . along with graduation invitations, family celebrations and multiple open houses. Most universities finish their spring terms at the end of April with high school commencement ceremonies soon to follow.

Whether students earn diplomas, GEDs, PhDs, bachelors’ or masters’ degrees, it’s a proud day for families and friends. Graduations also make perfect occasions to introduce young people to financial planning.

Graduation: Great time to introduce financial planning              

Graduations and other transitions from one stage in life to another provide unique opportunities for parents, grandparents and other relatives to pass on valuable lessons in financial planning to the next generation. Such memorable occasions make excellent means for teaching young people the value of saving money, investing it and watching it grow.

From simple U.S. savings bonds to more complicated investments, such as mutual funds or EFTs; monetary gifts can carry import messages that last a lifetime. Instead of cash this season, try putting money into an investment package that will encourage grads to focus on their financial futures.

Savings bonds still a good way to introduce investing      

 

Consider giving U.S. Treasury Department savings bonds as graduation gifts for children, grandchildren, or any other grads you know. You’ll pay less than the eventual worth of a bond, and they’ll see clearly that its value grows if they keep their gift uncashed for a designated number of years.

You have three savings bond options, starting at less than $25: electronic Series EE bonds, electronic Series I bonds and paper Series I bonds. Banks no longer sell savings bonds, but you can find further details online at TreasuryDirect for each of those three types. If you prefer personal help in giving your gift, you can make an appointment with a certified financial advisor to discuss your options. Visit aamllc.com, call 616-531-5220 or email rvansurksum@aamllc.com to set the date.

To purchase bonds for someone else, you’ll need to know their full name, along with their Social Security or Taxpayer ID Number. Parents or guardians can provide that information . . . or you can arrange a coffee or lunch date with your gift recipient. Invite the new grad to meet you and tell him or her to bring along that information. Also, ask that person to come with a computer (for opening a TreasuryDirect account). Then, all you have to do is transfer the bond you buy from your account to theirs (U.S. Treasury requests you do that at least five days after their account becomes active).

Savings bonds are still very effective ways to teach young people that money grows when saved and invested. If you think your grad is ready for more sophisticated lessons, take him or her to see a financial planner who can tell them all about mutual funds and other kinds of investment vehicles.

Manage Your Money . . . financial tips from: AAM Fee-Only Financial Planning & Investment Advisory LLC              

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Ronald Van Surksum, CFP                   

4555 Wilson Ave SW – Suite 2               Grandville, MI 49418                            

rvansurksum@aamllc.com                 

Phone: (616) 531-5220                             Cell: (616) 450-8439                               

For permission to reprint:                 ask@cameo100.com         04-15-22