Money Management
FOR
IMMEDIATE RELEASE: December 3, 2007
MONEY-WISE GIFTS FOR THE HOLIDAYS
When buying presents at this time of year, people often
spend a lot of money without being sure that they’ve really
found the right gift. While it is surely the thought that
counts, it’s also great to be able to give a present that’s
truly appreciated by the recipient.
According to the North Carolina Association of CPAs, there
are many financially savvy ways to indulge or honor a loved
one. If you’re tired of buying the same old ties or scarves,
here’s a look at some sensible—-and satisfying-—ways to get
the most for your holiday gift dollars.
SAVING FOR
TOMORROW
An investment in the future is often the most thoughtful
present. A US savings bond is a popular gift solution for a
young child or student. In addition to being a safe
investment, a US savings bond can also introduce youngsters
to the value of saving, and they offer federal and state
income tax benefits. Some of these bonds, which are issued
by the US government, can be purchased for as little as $25.
They earn interest or increase in value while they are held,
depending on the type of bond chosen. The federal government
offers more information about savings bonds at
www.savingsbonds.gov.
ONE SIZE
FITS ALL
If you’re not sure about the best present for one person on
your list, a gift card or gift certificate allows the
recipient to buy just what he or she wants. CPAs do offer
some advice on using them, based on alerts from the Federal
Trade Commission and other watchdog groups. First, when
buying a gift card, ask what fees are involved. Gift card
issuers may collect a fee for purchasing the card, may
deduct monthly fees until the card is used and may charge
the recipient for using it. Ask, too, if the recipient can
get a replacement if the card or certificate is lost or
stolen, and if the card will expire after a certain period.
CONTRIBUTE
TOWARD COLLEGE
529 plans are savings vehicles that families can use to put
away money for college without paying federal tax on their
distributions (there may be state tax advantages too,
depending on the state and the plan). Taxes on earnings
within the plan are deferred and when money is withdrawn for
qualified educational expenses, the distributions are tax
free. Anyone—-a grandparent, aunt or uncle or even a family
friend—-can contribute to a 529 plan. If you’re looking for
a great way to finance a loved one’s education, consider
starting or adding to a 529 plan at the holidays.
DONATE TO
A GOOD CAUSE
Wondering what to get for the person who has everything? The
best choice may be to make a donation in their name to a
worthy cause that’s important to them. You’ll be showing you
care about their interests and making the world a better
place at the same time. There are many causes to choose
from—rescue services, environmental groups, animal welfare
organizations, human rights groups. Some organizations make
it possible to use your donation to pay toward something
specific, such as saving an area of natural habitat or
buying livestock for an impoverished village in the
recipient’s name. Investigate your options and find out the
best way to give a gift that will make a difference.
SEEK
ADVICE FROM A CPA
It’s possible to have fun with your holiday gift giving and
still make prudent purchases. Your CPA can help. Ask him or
her for more insights into any of the ideas in this article,
or about other satisfying ways to make the most of your
gift-giving budget.
Produced
in cooperation with the AICPA.
©2007 The American Institute of Certified Public Accountants
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