Christmas is just days away. If you’re still trying to decide what to get that person who has everything, look no further. Give the gift of financial security.

Help your friends and relatives get their finances under control in 2011 and inspire them to invest. I’m not talking about giving them a wad of cash or a blank cheque, but tools to help them create wealth. Here are some ideas.

Investment books

Give financial knowledge to your loved ones this Christmas. Look at investment books from trusted authors Paul Clitheroe and Noel Whittaker.

Subscription to an investment newsletter or magazine.

Weekly or monthly investment newsletters and magazines keep you up to date with market movements and company news. Many also give specific stock tips. Ian Huntley's Your Money Weekly and Alan Kohler’s Eureka Report are a good place to start.

Investment courses

Educate your loved ones on stock market investing. There are a range of courses from beginners to experienced investors that teach how the market works, how to manage risk and how to pick stocks. Try the Australian Investors Association and the Australian Stock Exchange office in your capital city. 

Piggy bank

Get your kids interested in money with a fun piggy bank for Christmas and a few coins to get them started. Explain what saving is, help them decide on a goal and encourage them to put some of their pocket money in their piggy bank each week to save to buy it.

Savings plans

Open a savings plan for that relative or grown-up child who simply refuses to save and needs an incentive. Managed funds offer savings programs with an initial investment from $500 and deposits of $100 a month. If you’ve got a smaller budget open a high interest account with a bank, make an initial deposit and encourage your loved one to set up a monthly direct debit to the account.

Shares

Give some of your shares to friends or relatives and get them excited about investing. To transfer stock from your current portfolio you need to contact the share registry of the company you’re giving stock in and ask for an Australian Standard Transfer Form.

If you have made capital gains this year you reduce your tax bill by giving stocks you’ve lost money on. Capital Gains Tax (CGT) is calculated when you sell or pass on a stock. Just because a stock is trading at a loss in your portfolio it doesn’t mean it’s a dud company, you may have simply paid too much for it.

Financial plan

This is an ideal present for a friend or relative who is in financial disarray. It will help them invest their money wisely now and develop an action plan for the future. Book them an appointment with a financial planner who is a member of the Financial Planning Association. Fees will vary depending on their circumstances and whether they have any money to invest now.

Family budget

Everybody talks about doing a budget, the problem is few actually do one. Many households are struggling to cover higher loan repayments as interest rates rise. Family budget organisers, available from bookshops, are a great present idea.

Source: yahoo7finance