Smart holiday gift ideas for today’s young adults

    The holiday season is around the corner and while gift giving for children is easy with the wonderful toys and books out there these days, buying for the young adults in your life can be challenging.     As the economy is turning increasingly sour and young adults are living with more debt than ever before, I’d like you to consider a gift that will keep on giving-the gift of a more financially secure future.
    Here are seven ideas to get you started thinking about more responsible gifts. They may not be as much fun as some fancy new toys but they will certainly last longer.
• Money — Consider giving your children a CD that will collect interest if they leave it alone. This will teach them the principals of savings and investment. Or think more long term and open a Roth IRA for them, or offer to match a portion of whatever money they invest for their own future. If your gift is for a college senior or recent graduate, help them stay afloat by paying off some student loan payments, which has an added benefit-they’ll be able to write off the interest paid come tax season.
• Education — A good, solid financial education is proving to be more important than ever these days. So schedule an appointment for a session with a financial advisor. It is a great way for young people to set goals for their financial future, as well a reminder that what they do with their money today will affect their life tomorrow. In fact, in a recent interview with the Kansas City Star, a young woman credits her parents’ gift of time with a financial planner for keeping her debt free, financially secure and happy. If a personal session feels over the top, consider signing your loved-one up for a money management seminar.
• Health — Studies have shown that people who earn more money are generally healthier and fitter than those who are not. While there’s not any evidence that more money equates to a healthier lifestyle, or if looking fit leads to more opportunity, one thing is certain-when you’re healthy, you always come out ahead. So help your child look better and reduce stress by giving them the gift of a gym membership. The bonus: lower health-care costs as they get older.
• Clothes — Think beyond the latest designer jeans and instead to your child’s future college or job opportunities. Dressing for success – whether during an interview or at a job, is important, and a nice suit is the way to do it in style. Stick with a dark or neutral color. For guys, go with a crisp shirt, quality tie and traditionally styled shoes. Girls should get a suit that includes a pair of pants and a skirt.
• Travel — When it comes to being practical, a nice backpack trumps backpacking. So consider luggage as a gift option. Both students and young professionals travel, and quality travel gear is often out of their budget. Of course, if the wanderlust is too hard to hold back, and if it’s within your means, give the gift of a trip. It can prove to be the experience of a lifetime, and it’s better than your loved-one putting the can’t-miss trip on plastic.
• Entertainment — Not all responsible gifts have to lack fun. Tickets to concerts, sporting events and/or dining out at restaurants are things young people often spend money on but shouldn’t. So helping them out with gift certificates and passes to events can help them enjoy a little more of life without setting them back.
• Books and Magazines — They may not be as fun as People Magazine or the hottest best-seller, but they’re probably more interesting and useful than some chemistry textbooks. Financial magazines like Money Magazine (and Young Money Magazine for kids in high school) and books like “Get a Financial Life: Personal Finance in Your Twenties and Thirties” by Beth Kobliner will help young adults make smart decisions with their money now and well into their futures. The simple truth is that most kids are unprepared to make good financial decisions, and they pay the price as a result-students graduating from college these days have more than $20,000 of combined student loan and credit card debt on average. A $20 book or subscription will more than pay for itself in giving your child the knowledge he or she needs to make decisions that are in his or her best short- and long-term interests.
    This holiday season consider giving the gift of knowledge and power. These seven ideas will provide the young adult in your life with the understanding and discipline to build a strong financial foundation. Banking basics, such as savings, budgeting, charitable giving and planning are things you should begin working with your children on at an early age, and it should continue throughout their young lives, at least through college. Because if you can teach your children how to manage money wisely, it is truly the gift that keeps giving, and they will thank you for it for the rest of their lives.
    Cheri Doak of Caribou is senior vice president for retail banking at KeyBank. She works out of the Presque Isle office and can be reached at (207) 764-9425 or cheri_doak@keybank.com.