Christmas gifts that help grow riches for years to come

Christmas presents are sometimes discarded quickly, but some gifts will help deliver your loved ones long-lasting wealth.

Matt Smith gave his children finance books. Picture: NCA NewsWire / Naomi Jellicoe

Buying presents for people who have everything is always difficult, but it’s much simpler to buy for those who want everything.

Financial knowledge is a gift that can multiply modest amounts of money into millions of dollars, and there are more ways than ever to help people quench a thirst for wealth.

Beyond Bank Australia’s national operations manager, Sophie Scott-Young, says anything that sparks an interest or desire to learn more about something is a worthwhile gift.

“With the rising cost of living and the worry that many people have right now, this Christmas is a great time to give a gift that spreads financial knowledge as it has likely never been more relevant – or appreciated – for the recipient,” she says.

“If the person is younger, they may not have these financial pressures yet. However, sparking an interest in financial knowledge will help set them up for life.”

Beyond Bank’s Sophie Scott-Young says the gift of financial knowledge has never been more relevant. Picture: Tom Huntley

Micro investing platform Itrust Invest CEO Paul Reynolds says people are rethinking traditional ideas around gift giving.

“Family and friends no longer want to send unsustainable gifts, another plastic toy,” he says.

“They care about the child’s financial security.”

Here are four gift ideas that can turn Christmas into cash for friends and family.

BOOKS

Australian Shareholders’ Association financial wellbeing advocate Lel Smits says the festive season risks people becoming overwhelmed by spending money, but is also an opportunity to give financial knowledge.

“Paper and audio books are the ideal companions to teach about improving financial knowledge, from the basics to providing cutting edge concepts,” she says.

“There are personal finance authors to match every price point, personality and family member.”

It’s no surprise that the fastest-selling book in Australia in recent weeks is a finance book: Barefoot Kids by Scott Pape, whose money guides are constant bestsellers and his latest offering focuses on children.

INVESTMENTS

Becoming an investor is much cheaper and simpler than it once was, and requires little money to set up micro-investment apps such as Raiz, eToro, iTrust Invest and Sharesies, which can multiply wealth through regular contributions. The average gift on the iTrust platform is $87.

You can also buy direct shares in companies the recipient knows – such as JB Hi-Fi, Apple or Netflix – to give them a slice of something bigger.

Sometimes starting a simple savings plan, and offering to match deposits dollar-for-dollar, will work wonders.

Lel Smits from the Australian Shareholders' Association says books are great companions.

Smits says you should “be mindful of your budget and choose gifts that have the possibility of growing”.

“If you view your gift as a seed of opportunity to improve the life of the gift’s recipient, even the smallest gift has the potential of generating value in the future,” she says.

PODCASTS

Beyond Bank’s Scott-Young says make sure the gift will resonate.

“If the person is not a reader but loves podcasts then don’t give a book, give a podcast subscription,” she says.

“There are lots of great options out there.”

Many of Australia’s top money and investment podcasts are free, so just a nudge in the right direction may be a great gift.

EDUCATION

“If you know the person has an interest but they don’t know where to start, give them a voucher or sign them up for a short course that many of the banks and universities offer,” Scott-Young says.

“It doesn’t need to be a degree, but there are a plethora of online short courses provided by well-known and established institutions that may be as short as a few hours or up to a few weeks.

“Annual subscriptions or audio books range between $20 up to $200 depending on the topic.”

Smits says subscriptions are a gift that keeps giving.

Matt Smith gave his teenage children investment books as gifts. Picture: NCA NewsWire / Naomi Jellicoe

FAKE ENTHUSIASM TURNS TO SUCCESS

Father-of-three Matt Smith has given his children investment books at Christmas.

“They were in their teens at the time and needed to fake their enthusiasm for the gift, but as time passed they have referenced their books and it has given them a basic understanding and head start to a sound financial future,” he says.

“When I was younger, we weren’t lucky enough to have the internet to teach us about money through Ted Talks, social media or investor websites.

“I would have loved to have received a gift that broadened my basic knowledge of finances, which may have given me confidence to invest at a much earlier age.

Originally published as Christmas gifts that help grow riches for years to come