Financial Gifts for Babies and Kids

Jessica Perrone, Founder of,  is a Summit mom and experienced investor who’s on a mission to empower women and teen girls through Financial and Investing Education. Each month, she will answer questions she commonly receives on how to invest.

Each holiday season, parents, grandparents, and friends seek out exciting and unique gifts for children. Cash slipped into a card is an easy solution, but wouldn’t it be nice to give a gift that appreciates in value?


Financial gifts could be an excellent way for babies, kids & teens to kick-start their financial wellness and begin understanding the magic of compounding interest and its power to grow their investments. Whether you gift a custodial stock account, a savings bond, or contribute to a 529, you will teach the next generations about money and help them cultivate an interest in investing.


Here are a few financial gifts ideas to consider for various occasions, like baby showers, birthdays, and holidays.


  1. 529 Plan

You can help babies and kids save for their future college fees by contributing to a 529 savings account. The money in this account grows tax-deferred until they’re ready to use it for tuition, supplies, and room and board, all tax-free.

With a 529, friends and family can contribute to the account through a program like Ugift. Just keep in mind that different states have different rules when it comes to account management.


  1. Savings Bonds

Savings bonds are another excellent gift idea for kids and teens. Buying a bond is essentially lending the U.S government money, which will be paid back later. That money accumulates interest for up to 30 years. The investment grows steadily via interest earned.

You can purchase savings bonds directly at To register the bonds under the child’s name, just make sure you have the recipient’s full name and Social Security number handy.


  1. Stock Custodial Account

If a child or youth is a Disney fan and loves Caterpillar trucks or Mattel toys, you can gift stocks from these companies. Simply buy and hold those stocks in a custodial brokerage account where an adult can help manage the assets until the child is an adult.

I recently came across, where you can buy a printable or eGift card for stocks and crypto. The recipient, in turn, can choose from more than 1,000 stocks (such as Apple, Disney, Tesla, and Nike) and then track the performance on the kid-friendly app.



As with all investment accounts and vehicles, it is essential to do your research, but financial gifts for babies and kids are a great way to develop their financial literacy at an early age. Teaching kids how to invest can be fun and exciting for you, your friends & family. But keep in mind there are also various levels of risk involved.

Thanks for reading my column – and if you find these topics interesting, please check out my classes and/or watch an episode of “Her Money + Investing Show” on


May The Markets Be In Your Favor,

Jessica Perrone

Founder, Her Financial IQ

Show Host, Her Money + Investing Show


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