Pension & retirement
We often hear about the importance of improving financial literacy across the UK. Research consistently shows that developing these skills can enhance life outcomes across all ages and demographics, while also contributing to greater economic potential.
With that in mind, we asked IFAs across our 50+ locations in the UK to suggest the financial gifts they’d recommend—or those they loved receiving when they were growing up.
Inspired by the classic carol The 12 Days of Christmas, their suggestions are practical ideas designed to educate and encourage the future financial habits of your loved ones.
While it may not be the most cheerful gift suggestion, financial protection is undoubtedly one of the most important.
Life insurance, critical illness cover, or income protection can ensure your loved ones are financially supported in case of unforeseen circumstances. For young families or those with dependents, this kind of financial security is invaluable. It’s not the flashiest gift, and it’s unlikely to make an appearance under the tree, but it could be the most impactful. If you don’t currently have protection in place and you have dependents, the greatest gift you can give this Christmas is guaranteeing their future financial security in the face of unforeseen circumstances.
Board games are not just a fun way to spend time; they can also teach valuable financial lessons.
Games like Monopoly and The Game of Life introduce players to investing, managing cash flow, and the strategic risks of property ownership. Similarly, Hotel adds another dimension by showing how to build and manage assets effectively. These games can spark conversations about financial concepts in an engaging and entertaining way.
A Junior ISA is a forward-thinking gift that grows alongside the child.
This tax-free savings account allows parents or guardians to save on behalf of a child, giving them a financial head start when they turn 18. Whether it’s for university, their first car, or a deposit on a home, starting early makes all the difference. It’s a wonderful opportunity to teach young people about savings and compound interest.
Owning a stake in a company is a fantastic introduction to the world of investing.
Shares in a company that resonate with the recipient can make the concept of investing more relatable. If you’re looking for a diversified and expertly managed option, a Managed Portfolio Service (MPS) can offer an ideal way to invest in a balanced portfolio. Whether it’s individual shares or an MPS, the recipient can gain insights into how markets work and build an understanding of long-term wealth creation.
Piggy banks might feel like a throwback, but they’re still a simple and effective way to teach younger children about money management.
Growing up, the NatWest porcelain pigs were an introduction to saving for many people. Each new pig was a reward for hitting a savings milestone, teaching the importance of setting goals and working towards them. These days, vault-style electronic piggy banks can bring that concept into the modern era. Children love having their own codes, hiding birthday money, and even having friendly competitions to see who can save the most.
There are plenty of fun themed piggy banks available, alongside modern electronic versions, which make saving both engaging and practical. While we’re moving towards a cashless society, the act of physically saving and building up money remains a valuable and lasting life skill for children. Alternatively, digital savings jars within banking apps can also offer a modern twist on this traditional concept.
Books can be an excellent gift, offering insights and lessons that last a lifetime. Here are six thoughtfully curated titles that cater to various levels of financial literacy:
Each book offers a unique perspective, from budgeting basics to investment principles, making them ideal for anyone looking to improve their financial literacy. These titles don’t promise quick fixes but provide the knowledge and tools needed to make informed decisions about money.
Premium Bonds offer an exciting way to save.
They provide the opportunity to win monthly, tax-free prizes. Although they don’t pay interest, they’re backed by the government, making them a secure and engaging gift for someone new to saving.
Planners are a simple yet powerful tool for achieving financial goals.
High-quality financial planners encourage the user to track their expenses, set budgets, and achieve milestones. Options like the Clever Fox planner is particularly useful for younger individuals starting their financial journey.
A pre-paid debit card is a fantastic way for teens and young adults to manage their money.
By loading a set amount onto the card, they can learn budgeting skills without the risk of overspending. Many cards now come with companion apps that provide spending insights and promote financial responsibility.
Apps like Emma and Plum can transform the way young adults manage their money.
Emma helps track spending across multiple accounts, identifying areas where costs can be cut, while Plum automates savings and encourages investing with small, regular contributions. Both apps are invaluable for developing good financial habits, from saving for goals to making your money work harder.
Empowering someone with the knowledge to take control of their financial future is a gift that lasts a lifetime.
An online course in financial literacy or investing can equip young adults with the skills they need to budget, save, and invest effectively. Platforms like Coursera or Udemy offer affordable, high-quality options.
Finally, a consultation with a financial adviser is a gift of clarity and confidence.
A session with a financial adviser can be transformative. Whether it’s for a recent graduate setting up a budget or a mid-career professional planning their retirement, tailored advice can provide a strong foundation for a brighter financial future.
Why focus on financial gifts?
Financial gifts are about long-term value. They’re not just items; they’re tools for building security, independence, and confidence in managing money.
Are these gifts suitable for all age groups?
Absolutely. We’ve included options for children, teens, and adults. From piggy banks for the little ones to financial planning consultations for adults, there’s something for everyone.
What if the recipient isn’t excited by these gifts?
While financial gifts may not spark immediate excitement, they’re appreciated over time. Pair them with something fun or meaningful to create a balanced gift.
How do I choose the best financial gift?
Consider the recipient’s age, interests, and financial knowledge. A Junior ISA might suit a teenager, while a pre-paid debit card is great for older kids learning to budget.
By choosing a financial gift this Christmas, you’re not just giving something practical; you’re helping your loved ones take a step towards a brighter financial future. What better way to celebrate the season of giving?
THIS ARTICLE DOES NOT CONSTITUTE TAX, LEGAL OR FINANCIAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.
THE TAX TREATMENT IS DEPENDENT ON INDIVIDUAL CIRCUMSTANCES AND MAY BE SUBJECT TO CHANGE IN FUTURE.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE TAX AND TRUST ADVICE