2. The gift of an investment

This idea comes from my friend Andrea and is similar to something I've done for my god-sons.  The kids may not be jumping up and down for joy for this gift, but they will thank you later on when they realize how the money has grown!  The idea is to give the child an investment that will mature or be available to them when he or she is 19 (or whatever age you want to set).  I've set up a trust fund in the past for my god-sons, and instead of buying toys at Christmas and birthdays, I would deposit money into the trust funds.  The money is meant for them when they reach 19 and to be used for university or whatever they want to spend it on when the time comes.