Some Last-Minute Thoughts on Giving Lasting Gifts

Dear Readers: As the busiest shopping season of the year comes to a close — and you may be struggling to come up with that last-minute gift that doesn't push your budget over the edge — I want to share some ideas on giving in general. Because while traditional gifts can be fun to buy and a pleasure to give, there are other thoughtful ways to give that can be even more lasting.

A colleague of mine recently told me a family story. Her niece decided that this year, rather than buy individual gifts for her parents and brothers and sisters, she was going to create an experience they could all share. She and her husband came up with a plan to rent a vacation home for a week and help everyone join them there. Being a planner, she did the research, found the perfect vacation rental and then used a combination of mileage points and money to make sure everyone could participate. When she presented her plan, her family was thrilled — and all came together to fill in any financial gaps so the trip wouldn't be a tremendous strain on anyone. This week together became a family holiday gift that will be remembered forever.

Now granted, not everyone can afford this type of group gift, but this doesn't mean the spirit of it can't be realized in a variety of ways. Because what we're talking about here is showing people that you care in a meaningful way that goes beyond the shopping malls.

GIVE THE GIFT OF TIME

In our busy world, we often have trouble fitting in quality time with friends and family. You can't wrap it up with a bow, but showing someone you care enough to carve out time to spend just with them can be a gift to cherish. It can be as simple as dinner and a movie with a friend, or an afternoon at a skating rink with the grandkids. What about a trip to a museum? A picnic at the beach? Offering to babysit or walk the dog? These may seem like ordinary, everyday things, but if something is specially planned — and put on the calendar — it takes on more meaning. You might even begin a new tradition!

GIVE THE GIFT OF KNOWLEDGE

You can expand on the idea of giving your time by coupling it with giving your knowledge, especially about financial matters. For instance, you could take children or grandchildren to the bank and help them open savings accounts. You can talk about how interest adds up over time — and make it real by putting some seed money in the account and perhaps offering to match a portion of ongoing savings.

If someone in the family is struggling financially, offer to help him or her do a year-end review to put finances in order. Or help a young adult who's new to the workforce get started on retirement savings by walking him or her through the steps of opening an IRA. You might even offer to help fund some of it over time.

You don't have to be a financial expert to get someone going on a solid financial path — but the gift of your experience could prove to be invaluable.

GIVE THE GIFT OF EDUCATION

Helping fund a 529 account or Education Savings Account can be an extraordinary gift to parents struggling to save. Friends, family — anyone — can open a 529 account in someone's name or contribute to an existing account.

Some 529s can be opened with as little as $25. Conversely, an individual can contribute up to $70,000 in one year ($140,000 for a married couple) without incurring a gift tax if it's treated as though it were made over a five-year period. This could be especially interesting to grandparents who are looking to reduce their taxable estate.

MAKE THESE GIFTS YEAR-ROUND

If you're looking for a last-minute meaningful gift, consider one of these nontraditional ways to give. Write a thoughtful note describing your gift in a card, and present it at your holiday gathering. Then be sure to follow through on it.

One nice thing about this type of gift giving is that, while you may initiate the gifts for the holidays, you can carry them through year-round. And the experiences you share, the knowledge you pass on, and the educational opportunities you help create can last a lifetime. My warmest holiday wishes to everyone.

Carrie Schwab-Pomerantz, CERTIFIED FINANCIAL PLANNER(tm), is president of Charles Schwab Foundation and author of the forthcoming book "The Charles Schwab Guide to Finances After Fifty," available in bookstores in April 2014. You can email Carrie at [email protected]. This column is no substitute for an individualized recommendation, tax, legal or personalized investment advice. To find out more about Carrie Schwab-Pomerantz and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.

DIST. BY CREATORS SYNDICATE, INC.