Costco memberships, travel rewards transfers, 529 college savings plans, youth investment accounts, and down payment assistance can all serve as financial gifts for young people.
A Costco Gold Star Membership costs $65 annually. StackSocial currently offers new members a Gold Star Membership plus a $50 Digital Shop Card for $65, reducing the effective cost to about $15. An Executive Membership with a $50 Digital Shop Card costs $130, lowering the effective cost to roughly $80. A Consumer Reports study found that Costco offers the best prices on groceries.
If you have accumulated travel rewards points or miles, you can transfer them to recipients who are members of the same loyalty program. Hilton and Marriott allow free transfers, while many airlines charge fees. You can also redeem rewards for gift cards or book vacation packages directly.
Contributing to a child's 529 college savings plan allows money to grow tax-deferred and withdraw tax-free for qualified education expenses including tuition, room and board, and books. Grandparent-owned 529 distributions do not count as student income on the Free Application for Federal Student Aid and do not count as an asset, protecting federal aid eligibility. A parent-owned 529 is reported as an asset and can reduce aid eligibility by up to 5.64%.
Fidelity offers a Youth brokerage account for teens ages 13 to 17. Parents or guardians with existing Fidelity accounts can open one with no minimum balance. Teens own the account independently, can buy fractional shares, and parents can monitor but not trade or make withdrawals.
Helping with a down payment on a home is another option. In 2026, you can give $19,000 per recipient without filing a gift tax return. If married, you and your spouse can give $76,000 to a recipient without gift tax consequences. First-time homebuyers made up only 21% of all homebuyers according to the National Association of Realtors.