You don’t have to burn a hole in your wallet to get dad the perfect Father’s Day gift. Instead, consider this list of ideas that are sure to ignite dad’s passion for financial freedom.

This year, Father’s Day falls on June 16th, which means you have only a little bit of time to find dad a gift he will love. ::cue panic::

No worries, we’re here to help!

(As an aside, you might be surprised to learn that Father’s Day wasn’t even an official holiday until 1972. The concept can be dated back to around 1910 when the people of Spokane Washington wore roses to church in honor of their fathers.

With Mother’s Day having just been made an official holiday, the group from Spokane tried to have the same done with Father’s Day, but without any success.

The idea of recognizing fathers was laughable to many and although Presidents like Woodrow Wilson and Calvin Coolidge attempted to recognize the day, Congress would have none of it.

It wasn’t until 1966, when then-President Lyndon B. Johnson officially recognized Father’s Day, that people thought of it as a holiday.  Six years later, Father’s Day was added to the calendar, falling on the third Sunday in June.)

This Father’s Day, make sure you let dad know how much you love him by getting him something great.

1. Personal Finance Books

Books are an easy, but thoughtful, gift to give to anyone. They prove to be a valuable tool and a guide to people at any point in their financial journey.

Here’s a list of some of my favorites:

• The Intelligent Investor: This book was first published in 1949 but continues to hold so much relevance in markets today that even renowned billionaire Warren Buffet endorses it. It’s an excellent book on how to build the perfect investment portfolio and things to watch out for.
• Secrets of the Millionaire Mind: The motto of the book is that if you’re poor, it’s because you think like a poor person and if you’re rich, it’s because you ‘think rich.’ The book says that poor parents pass down their limited views to their children, restraining them in the cycle of poverty.
• The Richest Man in Babylon: Though the book was published in 1926 initially, it remains a timeless masterpiece of parables. The essence of the book boils down to rich people being rich because they save their money and don’t spend it on unnecessary stuff and don’t get in debt.
• Your Money or Your Life: This book transforms people’s perception of money though explaining the relationship they have with it. Money is something you trade your energy to earn through work. However, to live a healthy and happy life, you must detach yourself from money and get better at managing it instead of having to put in longer hours.

2. Stocks

Stocks are undoubtedly one of the best gifts to give to dads. They not only provide a steady stream of income in dividends or capital appreciation, but they can also be a source of pride as having part ownership in your dad’s favorite company.

If you’re confused about which stocks to invest in as a gift, some of the best ones to start with would be blue-chip stocks. Blue-chip stocks are those companies established for some time and hold a sizeable market share in their respective industries.

Many also dish out regular dividends, so you need not be worried about selling shares to make money. For example, here are a few of my favorite blue-chip stocks:

• Apple
• Google
• Amazon
• Johnson & Johnson
• Bank of America

A decision to invest in blue-chip stocks is just a suggestion, as they dish out dividends more regularly than the rest. But not all blue-chip companies dish out dividends, for instance, Microsoft.

The stock you want to buy as a present for your dad depends on the scenario. If you’re looking to gift him a stock that gains value over time and you’re not concerned with regular dividends, then you’d be better off investing in a company that is small at the moment but has enormous growth potential.

Related: Stockpile Review 2019 – Giving the Gift of Stock

3. A Paid Session with a Financial Advisor

A financial advisor can be of use to anyone at any point of their financial journey. They can open new paths and add a fresh perspective to any finance-related question your dad might have.

If your dad is planning something that affects the financial health of the family, like setting up a business or going on an expensive trip to Europe, the advisor can offer some great insight on how to make it happen.

Just know that there are ongoing costs with financial advisors, so you might be stuck paying for multiple sessions (if they’re fee-based) or other hidden costs.

4. Financial Software for Tax Season

Sure it’s past tax season, but for the nerdiest of dads, the next tax season is already less than a year away. This means it’s time to start prepping!

In all seriousness, software like Quickbooks or Personal Capital can be helpful to start tracking your expenses now, so you’re not scrambling at tax time next year.

If you really want to get ahead of the game, you can buy dad a gift card for an online tax prep service early on and he can use it the following year when it comes time to file taxes.

5. Credit Monitoring Software

Gifting your dad a credit monitoring program might not be the ideal gift, but it’s an efficient one as it acts as a financial shield. Hacking and identity theft have been on the rise, and people do not realize the importance of a credit monitoring program until it’s too late.

That is precisely why a credit monitoring program is a very thoughtful and practical gift. One of the most popular ones out there is from TransUnion. However, remember this gift does require some personal information you’ll need to get from your dad.

6. Gifting Shares in a Mutual Fund

One of our top picks for a financial gift, this one can be gifted to any dad, whether they are well-versed in finance or not.

An investment in a mutual fund is still considered as one of the best investment strategies for ordinary folks looking to make a return on their money.

One of the best advantages of investing in a mutual fund is a diversified asset class where your money goes into a large pool of investable assets, from stocks and bonds to even commodities and EFTs.

Most mutual funds are relatively liquid, and there is not much of a difference in the purchase price and sale price. However, do look out for any fees imposed on early withdrawals.

7. Exchange Traded Funds (ETFs)

Exchange Traded Funds (ETFs) have seen a considerable rise in popularity since their conception as they are a perfect alternative for mutual funds.

Has your dad ever wanted to invest in gold, silver or anything that the stock market doesn’t offer as a direct commodity? Then, an ETF is the perfect way to go as it’s essentially a basket of assets that track an index.

Related: E*Trade gifts you money depending on the amount you deposit into your trading account. Learn More.

ETFs trade like stocks and have the same liquidity. They make the perfect financial gift for a dad as they can be exciting and give high returns. If you’re confused about how to purchase the gift, you can do so through SparkGift which lets you invest and gift one for as little as $20.

8. Bonds

One of the most risk-free investments out there, bonds are an ideal financial gift for dads who are passive investors.

Bonds come in different timelines. There are one-year bonds, 5-year bonds and even 30-year bonds with all the in-betweens. They all offer a different interest rate depending on the timeframe of the bond.

You can purchase one for your dad through a TreasuryDirect account (for U.S. government bonds only), and the recipient can receive it in their account.

Bonds are one of the most risk-free investments out there that provide a stable fixed income in the form of interest rates annually or semi-annually. The type of bond you want to gift to your dad depends on the situation.

If your dad is retired, you’d prefer bonds with 5-year lengths so he may receive the principal amount within five years. If your dad is far from the age of retiring you’d prefer a bond 15 or even 20 years in length. Bonds with a higher timeline offer greater interest rates as they carry slightly more risk.

9. Budgeting Program

A budgeting program that manages all your budgets, retirement plan, spending habits, net worth, and much more is an ideal gift for dads on Father’s Day.

Dads might not be aware of some extra fat hampering their finances and hindering their financial goals. Sometimes, it doesn’t feel rewarding enough to hold back at a supermarket or when shopping for Christmas.

However, budgeting software can show your dad the benefits of being a disciplined spender and help them achieve a financial goal such as paying off a loan or going on a cruise. My favorites include Personal Capital and YNAB.

10. A Good Old-Fashioned Savings Fund

Instead of choosing a fancy gift, you could set up a savings fund for your dad where you can either deposit a lump sum amount of money or pay in installments till he retires.

Even if you give a small amount, it will open a new account and potentially kick-start your dad to start saving more money.

One of our favorite savings accounts right now is the Savings Builder account from CIT Bank. Throw $100 in there to start, and as long as dad puts $100 in there each month, he’ll get a great return.

Bottom Line

As you can see, not all gifts have to be tangible, like a crappy tie. With savings rates as low as they are, it makes sense to get your dad a financial gift this year. Think outside the box, and set your dad up with a little extra cash or financial knowledge. Let us know in the comments below which gift you end up choosing!

Topics: Smart Spending

The post Father’s Day: Best Gifts to Enrich Dad’s Wallet appeared first on The Dough Roller.

via Finance Xpress