Purposeful Family Gifting

Seeing grandchildren tearing through beautifully wrapped gifts in a semi-maniacal, sugar-fueled ecstasy can occasionally offer some fleeting emotional reward. But, these memories are quickly forgotten as toys are lost and electronics become outdated. A growing number of baby-boomers are subtly shifting their gift-giving practices in order to enjoy a longer-term appreciation of their gifts. Instead of giving presents that are easily misplaced or become obsolete, some parents and grandparents are giving cash gifts, with strings attached, to younger generations.  

Some of these cash gifts are being used as motivational tools. When a child or grandchild graduates from college, for example, a grandparent may help out with a down payment on a first home. Or, the grandparent may give certain sums of cash as a reward if a grandchild maintains a certain GPA. Other gift-giving practices have moved toward offering a shared family experience. Paying for a family cruise or a once-in-a-lifetime vacation can bring family together and provide for wonderful shared memories. With more purposeful giving, grandparents are able to see the benefits of their gifts while alive and may make a lasting positive impact on children and grandchildren.

See Amy M. Kane, Purposeful Family Gifting, Financial Advisor, August 7, 2017.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.