IT’S the most wonderful time of the year, when we gather with friends and family. All I Want for Christmas plays on loop, or you may be more of a 12 Days of Christmas fan with your wallet singing Do You Hear What I Hear?. We know giving gifts is a way to show appreciation and love for those closest to you, but before you swan-dive into spending and ‘sleigh’ your budget, this year you could consider a more unconventional route and provide a financial gift that can benefit the long-term well-being of those nearest and dearest to you.

The first gift is for the person who has expressed an interest in learning more about their finances. Give them the gift of a wealth of knowledge that can secure their future for years to come. Consider signing them up for their first finance course or workshop — it could be online or in-person. With a solid foundation in financial education, you’re giving them the tools to confidently and efficiently manage their personal finances in the future.

The second gift is an important lesson and reminder post-Hurricane Melissa — the gift of insurance. For the new year, help your family not only with their financial health but also their physical well-being. Book them an appointment with an insurance advisor to work out the best health and home insurance solutions that suit their budget and needs.

For the parents of little ones who seem to have a million toys and inevitably find the greatest joy in a cardboard box, consider gifts that build their future. Gift certificates for mutual funds are a great alternative. Research a mutual fund with a proven track record of growth and positive return. These funds are great wealth builders and can facilitate paying for the future education of the little ones nearest and dearest to your heart.

A fourth gift option is for the future Warren Buffett in your life — stocks or bonds may be a great option and a source of capital appreciation for your future investors. Consider opening an account in their name with a small denomination of a stock or a bond. If the stock is a dividend-paying one and income from the bond is received, it also presents the gift of compounding interest.

The final financial gift option is for your loved ones who like the finer things in life. Many people enjoy receiving gold jewellery but instead, give them gold in another form. This year, switch it up and consider an Exchange Traded Fund (ETF) that tracks gold or other precious metals. Gold is considered a safe haven in times of economic uncertainty, and an excellent portfolio diversifier. The benefit of gifting an ETF is that it also provides security, since you do not have to worry about the quality of the gold, incur storage fees, or have the hassle of physical gold bars.

This holiday, give your loved ones the gift of financial security. Whether they are naughty or nice, a financial advisor can help with creating a budget and ensuring what you spend, be it big or small, gives them the tools to move towards their financial goals. May this season bring you and yours all things merry, bright, peaceful and abundant for the new year.

Christine Rankine is assistant vice-president – personal financial planning at Sterling Asset Management. Sterling provides financial advice and instruments in US dollars and other hard currencies to the corporate, individual and institutional investor. Visit our website at www.sterling.com.jm

Feedback: if you wish to have Sterling address your investment questions in upcoming articles, e-mail us at info@sterlingasset.net.jm.

Christine Rankine.