FOSTER CITY, Calif., April 29,
2021 /PRNewswire/ -- More than one million students
will graduate from college this year and that number skyrockets if
you add in high school seniors. MyBankTracker.com created a
gift-giving list that grads will be throwing their caps in the
air for that also makes good
financial sense. Here are Four Alternative College Graduation
Financial Gifts Every 20-Something Needs:
1. Contribute to a starter emergency fund
College
graduates are likely to be entering the real world with plenty of
student loan debt as they start their careers and secure a source
of income. An emergency fund can offer a small safety net in
case anything doesn't go as expected -- it could keep them from
racking up even more debt.
Tip: Steer your grad toward an online savings account;
they tend to charge fewer fees and pay higher interest
rates.
2. Gift a CD ladder for long-term savings
Grads want
to save for things like their first car. Setting them up with a CD
ladder makes it easy for them to keep earning interest until they
need to use the money. The longer the term, the higher the interest
rate; after the maturity date, they can cash it out with interest
earned.
Tip: Consider staying on as a joint accountholder to keep
an eye on how the money is used.
3. Kick-start a Roth IRA
Help start a Roth IRA
for the grad's future nest egg. Since these retirement accounts are
funded with after-tax dollars, withdrawals are tax-free. Even if
the college grad doesn't max it out in the earlier years, you're
helping to build momentum for retirement savings.
Tip: If young graduates aren't keen on managing a
retirement portfolio yet, steer them towards a robo-advisor that
can simplify the process.
4. Gift individual stocks, mutual funds and
bonds
Teach them how to invest by gifting individual
stock shares or cash for mutual funds or bonds. Not only are you
giving a gift, but you're helping them build wealth. There are
sites where you can choose individual shares or ones that allow you
to purchase stocks and bonds to transfer directly into the grad's
online account.
Tip: If you give more than $15,000 to someone in a year, you need to file a
gift tax return (IRS Form 709), but, that doesn't necessarily mean
you'll owe any gift tax.
About MyBankTracker
MyBankTracker is owned and
operated by QuinStreet, Inc. (Nasdaq: QNST), a leader in
providing performance marketplace technologies and services to the
financial services and home services industries. QuinStreet is a
pioneer in delivering online marketplace solutions to match
searchers with brands in digital media. The company is committed to
providing consumers with the information and tools they need to
research, find and select the products and brands that meet their
needs. MyBankTracker is a member of QuinStreet's expert research
and publishing division.
MyBankTracker is an independent comparison website helping
consumers make smart banking and financial decisions. The mission
is to match consumers to their perfect bank by providing and
tracking in-depth information on more than 5,000 banks, credit
unions and financial products. Using a combination of technology
and money management expertise, MBT provides personal finance
comparison tools and educates consumers to optimize their
relationships with banks and lenders.
Twitter: @mybanktracker
Facebook: https://www.facebook.com/mybanktracker
Media contact
Amy
Eury
Public Relations Manager
412-532-9352
aeury@quinstreet.com
LinkedIn
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SOURCE MyBankTracker.com