If you’ve achieved success through your hard work, you may be considering how to leave a legacy for future generations. It’s important to remember that receiving too much too soon can have negative consequences for young people. However, there are ways to provide financial support to your grandchildren that can help them succeed in life. Here are three ideas to consider.
1. Fund Their Education
There are a variety of educational paths that young people may choose, from four-year universities to trade schools or two-year degrees. However, the cost of education is high and can often result in significant debt. Setting aside money in a 529 account or directly paying for their education can be a meaningful way to help your grandchildren move forward after high school, regardless of the path they choose.
2. Help Purchase an Asset
Another way to help your grandchildren is to contribute towards the purchase of a big-ticket item that will help them establish themselves. Assets like a car or a home are often essential but can be challenging to afford, especially for young adults just starting out. By helping with the down payment or contributing towards the mortgage or loan, you can provide a valuable gift that will help them get ahead.
3. Get Them Started With Investing
If your grandkids are working adults, one way to help them plan for their long-term financial future is to consider investing. Some Americans have little to no retirement savings, and setting up an investment account with your grandchild as the beneficiary could be a good way to make wise investments they will inherit later. Alternatively, you could help them fund their own investment account and connect them with a trusted financial advisor to assist with their investment strategy.
Wise Ways to Provide Support for Grandchildren
Providing financial assistance to your grandchildren in ways that can enhance their lives is
a great idea. While cash gifts may seem like a good option, it’s often beneficial to offer
support in a more structured manner.
Consider the following three options for supporting your grandchildren’s future: assisting
with major expenses, such as education and homeownership, and helping them get a head
start on investing. These actions can have a significant impact on their future financial
security.
