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4 Best Investment Gifts for Graduates, Foundation for Financial Success

Ruchi Gupta - Author
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May 10 2022, Published 9:14 a.m. ET

If you know someone graduating from high school or college, you might want to buy them a gift. Money has always been the most popular graduation gift. In addition to cash, clothing, electronics, and gift cards are the other popular graduation gifts. But you may be looking for something unique. If that is the case, you could consider an investment gift for the graduate. What are the best investment gifts for graduates?

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Many graduates are leaving college with student loan debt. They will appreciate a financial gift they can build on and not just spend. There are a variety of investment gifts you can choose from, depending on your budget and intent.

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What are the best investment gifts for graduates?

An investment gift that starts a graduate on the right path to financial success will have a lasting impact on their life. Below are some of the best investment gifts for graduates.

Introduce the graduate to stock investing.

The stock market is where many people have become rich. Introducing a young adult to stock investing can have a lasting impact on their life. You could do this in several ways. For example, you could gift your appreciated stocks, in which case you would avoid the capital gain tax on those shares.

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You could purchase stocks for the graduate’s account. Chelsea Clinton, former President Bill Clinton’s daughter, received Coca-Cola shares as a high school graduation gift from a family friend. The younger Clinton has remained active in the stock market. You don’t need to break the bank to give a stock gift. You can purchase fractional shares of blue-chip stocks for as little as $1. Bonds are other popular investments that could be suitable for a young adult leaving college, especially if they are gifted alongside stocks.

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You could consider a crypto graduation gift.

A crypto gift could be a pleasant surprise for a graduate. Specifically, Bitcoin could be a great deal. The flagship crypto’s price predictions indicate that it could be worth as much as $1 million by 2030. The other cryptos that could be good graduation gift are Ethereum, Solana, and Cardano since they will likely continue to benefit from the DeFi, NFT, and Web 3.0 boom.

Retirement saving is best started early

Saving for retirement may not be a priority for a young adult leaving college. However, the best way to have enough money in retirement is to start saving as early as possible. A graduation gift is a good way to introduce the graduate to retirement savings early. You can do that by helping them fund their Roth IRA.

It's important to teach graduates good money habits.

The best investment gift for a graduate goes beyond gifting stocks, bonds, and crypto. You could help the graduate learn good money habits early as they enter the workforce. You could pay for them to have a session with a professional financial adviser or purchase a financial planning app subscription. The insights they would get could help them avoid the common financial pitfalls that can ruin a young adult’s life when they enter the job market.

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