Thoughtful Ways to Gift to Your Adult Children: Financially and Beyond 

As children grow into adulthood, many parents still want to provide support, whether to help them get established, ease a financial burden, or simply give them a meaningful boost. Gifting to adult children doesn’t have to be grand or complicated. Even modest gifts offered intentionally can help strengthen their financial footing and show them you’re cheering them on. 

Here are several ways to gift to your adult children, both financially and through practical, heartfelt support. 

One-Time Financial Gifts 

Small, well-timed gifts can make a big difference in your child’s daily life. Covering a car repair, helping with moving costs, or purchasing professional attire for a job interview may seem small, but reliable transportation and a strong first impression can make a big difference in their ability to secure work and build financial independence. 

Annual Financial Gifts 

If you’d like to gift regularly, the annual gift tax exclusion can be a way to share your wealth. 

For 2025 and 2026, the annual gift tax exclusion is $19,000 per recipient. You can give this amount to as many individuals as you’d like without filing a gift tax return or using any of your lifetime exemption. Married couples may gift up to $38,000 per recipient per year. These annual gifts can help adult children with important milestones or long-term goals, such as: 

• Contributions to a 529 college savings plan 

• Funding a Roth IRA 

• Paying down student loans or credit card debt 

• Helping with a wedding, first home purchase, or new business venture 

Some gifts, such as tuition paid directly to a school or medical bills paid directly to a provider, can be given in unlimited amounts without using the annual exclusion at all. 

Ongoing Financial Support 

If you’d like your gift to be felt more consistently throughout the year, you might consider covering smaller recurring expenses such as: 

• A portion of their phone bill 

• Car insurance 

• A subscription or service they depend on 

These ongoing gifts can create breathing room in your child’s budget, which may support their ability to focus on saving, career development, or managing household expenses. 

While gifting strategies can provide meaningful support, they should be considered in the context of your own long-term financial security, tax situation, and overall estate plan. 

Gifts That Encourage Healthy Financial Habits 

Some of the most powerful gifts are those that reinforce good financial habits and long-term stability. 

• Match their savings. Help your child open a savings account by making the first deposit or offering to match their contributions. You can also use matching to encourage progress on credit card or other debt repayment. 

• Fund or match contributions to an IRA, subject to contribution limits, earned income requirements, and eligibility rules. If your child is freelancing or doesn’t have access to an employer retirement plan, an IRA, particularly a Roth IRA, can help them start saving for the long term if they meet eligibility requirements. 

• Gift shares of stock. Giving stock in a company they care about, such as a tech, entertainment, or socially responsible firm, can spark interest in investing and teach valuable lessons about long-term growth. 

• Gift appreciated assets. Gifting appreciated assets to adult children in a lower tax bracket can transfer wealth and potentially reduce capital gains taxes. This strategy may have trade-offs, including the transfer of costs basis and the potential loss of a step-up in basis at death. 

Non-Financial Gifts with Lasting Value 

Gifting doesn’t always involve money. Some of the most meaningful gifts you can offer your adult children come from your time, your experience, and your preparation. 

• Offer practical support. Reviewing a resume, making introductions for networking, or assisting with a job search can be just as valuable as financial help. Providing childcare or pet-sitting can also help your child save money on essential expenses. 

• Share your knowledge. Many young adults haven’t had formal financial education. Helping them create a budget, understand credit, or learn investing basics can provide lifelong benefits. 

• Organize and document your financial world. Preparing a document that outlines essential information your family will need upon your passing can spare your loved ones anxiety, confusion, and potential conflict during an already difficult time. This document should include: 

• Who to contact: Your financial planner, accountant, attorney, employer, banker, and other key advisors. 

• What you own: Insurance policies, collectibles, jewelry, mortgages, loans, and other assets and obligations. 

• Where things are: A list of financial items is only helpful if your children know it exists and where the items within it are located. They don’t need to know the details today, only how to access them when the time comes. 

Taking the time to organize this information is a profound act of care and one of the most meaningful non-financial gifts you can provide. 

Planning Your Gifting Strategy 

Every family’s situation is unique. Your financial advisor can help you determine how gifting fits within your broader financial plan, including how much you can comfortably give, which gifting strategies are most tax-efficient, and how to support your adult children without compromising your own financial security.

This is intended for informational purposes only. You should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for, personalized investment advice from Savant. Please consult your investment professional regarding your unique situation.