Gifts That Grow: Financially Meaningful Ways to Celebrate Your Graduate

Smart Alternatives to the Standard Gift:

Graduation season is a time of celebration—of hard work, accomplishments, and the exciting road ahead. Whether your graduate is heading off to college, beginning their career, or launching a new adventure, this is also an opportunity to help them start building a strong financial foundation. 

 If you’re thinking about how to commemorate this milestone, here are a few meaningful and forward-looking gift ideas to consider: 

Contribute to a Roth IRA

If your graduate has earned income this year (from a part-time job, summer internship, etc.), they may be eligible to open a Roth IRA. Contributions grow tax-free and can be withdrawn tax-free in retirement. It’s a powerful way to introduce the value of compound interest early in life.

For example, a $1,000 contribution at age 18 has the potential to grow into tens of thousands by retirement—without another dollar added. 

 Gift Appreciated Stock

Giving appreciated stock—rather than cash—can be a tax-efficient way to transfer wealth and introduce investing principles. It's a tangible way to teach the concept of ownership and long-term thinking. If the graduate sells the stock later, they may benefit from a lower capital gains tax rate due to their likely lower income bracket.

Open an Investment Account for Their Future

As graduates approach or reach the age of 18, opening a traditional investment account in their name can be a smart and timely gift. It offers an opportunity to introduce them to the fundamentals of investing, long-term thinking, and financial responsibility—all under your guidance.

Alternatively, a custodial account (UGMA/UTMA) may be appropriate if the graduate is still under 18. These accounts allow you to gift assets that the young adult will take full control of at the age of majority—typically 18 or 21, depending on the state. Some states that support UTMA accounts allow you to extend the age of transfer up to 25, offering more flexibility and continued oversight. 

 Offer a Session with a Financial Advisor

A planning session can be an incredibly valuable gift—especially for young adults navigating student loans, budgeting, credit, and their first full-time paycheck. We’re happy to meet with them and offer guidance tailored to their current stage of life, helping to set habits and understanding early.

Thinking About Gifting Cash? 

 Cash is always appreciated—and it can be a smart move for the giver, too. In 2025, you can give up to $19,000 per person per year (or $38,000 per couple) without triggering gift tax reporting requirements. While this doesn’t provide a deduction on your taxes, it can be a valuable tool in reducing the size of your taxable estate over time. 

 Whether it’s cash, stock, or a conversation with a trusted advisor, we’re here to help you craft a gift that aligns with your values and your graduate’s future. 

 Let’s Make This Moment Meaningful 

At Van Hulzen Financial Advisors, we believe passing healthy values is just as important as passing assets. 

If you’d like help exploring any of these ideas—or you’d like us to meet with a graduate in your life—we’d be honored to be part of the journey. 

*The foregoing content reflects the opinions of Van Hulzen Asset Management DBA "Van Hulzen Financial Advisors" and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful. 

Investment advisory services offered through Van Hulzen Asset Management, insurance products and services through Citadel, an affiliated company. Any references to guarantees relate only to insurance products and are based solely on the claims paying ability of the underwriting company.