To Gift or Not to Gift: Spoiling your Grandchild
As a grandparent, your natural instinct might be to shower your grandchild with happiness, love, and…gifts. Before spoiling your grandchild, consider what message you are sending. Buying your grandchild's love might result in a superficial relationship and recovering from these ramifications can be difficult. Consider gifts that benefit your grandchild's future or gifts that accumulate value over time.
Purchase gifts without an expiration date. You might not garner your grandchild's immediate attention with a piece of paper, but over time, your grandchild will come to appreciate your intuitive gift. These gifts will grow with your grandchild:
Trust Funds: this option allows you to set aside cash or other assets that will provide some degree of financial security for your grandchild's future. You can put certain limitations on the trust, such as an age limitation, which disallows your grandchild from withdrawing any funds until he or she reaches a certain age. You might consider creating a trust fund to help finance your grandchild's education.
Savings Bonds: you can purchase a savings bond ranging from $50 to $10,000. The type of bond you purchase will determine how much interest your investment accrues over time. Savings bonds can be purchased from the government's TreasuryDirect website, through your employer's payroll deduction plan, or any other financial institution (i.e. banks). Your grandchild must own the savings bond for one year before being able to redeem it, and the bond will earn interest for up to 30 years. If purchased at birth, your savings bond can also lend a hand in funding your grandchild's education! Other limitations may also apply to your bond.
Cord Blood Banking: parents can choose to collect and preserve the stem cells from their baby's umbilical cord blood directly after birth. If your grandchild becomes ill, he or she will have access to their cord blood which can treat nearly 80 life threatening diseases. This gift idea should be discussed and planned with the parents before the birth.
Family Heirlooms: when your grandchild is old enough, consider passing down a family heirloom or keepsake. This will help your grandchild remember you throughout his or her lifetime.
Show your grandchild you really care by thinking ahead and purchasing gifts that have a positive impact on their life.