By Steve Crifasi, CFP®
Toys, gadgets, and jewelry can bring immediate joy—but the most enduring gift you can offer may be one that shapes your grandchild’s financial future. Thoughtful financial gifts are a powerful way to express love and leave a lasting legacy, helping raise the next generation with stability and confidence.
This article explores impactful financial gifts that go beyond the moment—investments in your grandchild’s future, from education to long-term financial well-being.
Set Up a Roth IRA
One of the most impactful gifts you can give is a Roth IRA. If your grandchild has earned income, they’re eligible to contribute—and so are you, on their behalf (up to the annual limit of their earned income).
You can help your grandchild build a solid financial foundation at a young age by opening a Roth IRA for them. Tax-free growth of contributions means that starting early results in significant compounding over time and tax-free withdrawals give your grandchild significant financial power later in life.
Opening a Roth IRA at a young age can help your grandchild form a strong savings habit and set them up for a strong financial future.
Gift Stock in a Kid-Friendly Company
Introducing children to investing can be both educational and exciting, especially when the investment connects to something they love.
Consider purchasing shares of a well-known, kid-friendly company like Disney, Mattel, or Nike. Owning a piece of a company they recognize can spark curiosity about how businesses work, what drives stock prices, and how dividends are paid.
This is also a chance to introduce the concept of risk and reward, teaching them about market ups and downs and the importance of patience and long-term thinking.
Contribute to a 529 Education Savings Plan
While it may not be flashy, contributing to a 529 plan can be one of the most meaningful gifts you ever give.
These accounts grow tax-deferred, and qualified withdrawals for education expenses (like college or trade school) are tax-free. Many states offer their own plans with a variety of investment options. You can contribute as a lump sum or set up monthly gifts.
By investing in a 529 plan, you’re helping reduce future student debt and opening doors to greater opportunity.
Open and Contribute to a Custodial Investment Account
A custodial account (UGMA/UTMA) is another excellent option to help your grandchild learn about saving and investing.
These taxable accounts can hold a wide range of investments and there are no annual contribution limits. Anyone can contribute, and the funds can be used for any purpose that benefits the child.
Investing in broad market indices like the S&P 500 or Nasdaq 100 can teach long-term thinking and the power of compound growth. Just keep in mind: once the child reaches the age of majority, they gain full control of the account. Also note that unearned income over $1,350 (as of 2025) may trigger a tax filing requirement.
Reach Out for Help
Gifting financial confidence may be the most meaningful investment of all. When you teach kids about saving, investing, and making smart decisions, you’re giving them tools that can last a lifetime.
At Westover Capital Advisors, we work with families to create thoughtful strategies that align with long-term goals. If you’re thinking about how to create a legacy through smart financial gifts, we’re here to help.
Contact us at (302) 427-9600 or email [email protected] to start the conversation.
About Steve
Steve Crifasi is Associate Director of Wealth Management and Business Development at Westover Capital Advisors, an independent, fee-only investment and wealth management firm based in Wilmington, Delaware. With over 15 years of experience, Steve partners with clients to understand their goals and deliver personalized financial advice, always acting in their best interest as a fiduciary.
A graduate of Villanova University with a BBA in Finance and a CERTIFIED FINANCIAL PLANNER® professional, Steve began his career as a research analyst at Penn Square Capital and later worked at Glenmede and Wilmington Trust managing relationships with high-net-worth families. He is an active member of the Delaware Estate Planning Council and Wilmington Tax Group and has served on committees for several local nonprofits. Connect with Steve on LinkedIn to learn more.
