The best gifts for grandchildren (it’s not all about money)

Being a grandparent can be one of life’s great joys and whether you realise it or not, your influence on your grandchildren is profound. While it’s tempting to spoil your offspring’s offspring with flashy toys and money, not everyone has the means to do so - and that’s okay.

The most valuable gifts don’t always come with a price tag. You can support and enrich your grandchildren’s lives, whether or not you have extra cash to spare. Here are a few ideas from Vanessa Glennie, Lifetime Retirement Income.

1. Share your wisdom…and your time

You’ve got decades of life experience and know-how; sharing that wisdom can have a lasting impact. Whatever your particular expertise, whether it’s managing on a budget, mending clothes, knitting, knowing your way around a car’s engine, or knocking up a shelf, practical lessons like these are more important than ever.

And the best thing of all is it allows you to just be present with your grandchildren. Kids of all ages thrive on love, attention, and shared experiences, whether you’re reading a book together, watching a movie, or going for a walk.

My children’s grandmother has a particular board game she brings out whenever we’re together and ‘insists’ they play it with her at least once a visit. They’re in their teens now and still happily drop what they’re doing to join her. And I love the fact they’ll always associate this game with her.

No matter how much money you have, your time is the most valuable gift of all.

2. Set a gift budget…and stick to it

It’s easy to get carried away wanting to spoil your grandchildren, but it’s important to ensure your generosity doesn’t put your own financial security at risk. Even more so if you have several grandchildren.

Rather than buying big-ticket items for birthdays and holidays, consider meaningful yet budget-friendly gifts. A scrapbook filled with family memories, a cooking session where you pass down a treasured family recipe, or a handwritten letter sharing your hopes and dreams for them can be more valuable than anything bought in a store.

Prezzie cards are a good option if you prefer to let them choose their own gift. Even better if you take them shopping and help them track how their spending affects the balance—lessons that will serve them well as they grow.

3. Invest in their future

If you’re in a position to contribute financially, investing in your grandchildren’s futures can be incredibly powerful. It doesn’t have to be huge sums - even small, regular contributions can grow significantly over time. It’s a good idea to discuss any financial support with your grandchildren’s parents first.

Options to consider:

KiwiSaver contributions

Making regular contributions to a grandchild’s KiwiSaver can help them secure a strong financial foundation, whether for a first home or retirement. And it means the money can’t be accessed and spent impulsively.

Children’s investment accounts

While you can always deposit money into your grandchildren’s bank accounts, platforms like Kernel, Hatch, InvestNow and Sharesies offer children’s investment accounts that can be managed by a responsible adult (that could be a parent or a grandparent).

These allow for even small amounts to be invested in shares, ETFs, or managed funds for long-term growth. This has the added bonus of exposing them to investing and developing their financial literacy (if they’re involved in the decisions and shown their portfolio regularly) from a young age. These accounts also allow them more flexibility with their money than KiwiSaver, once they’re old enough to take responsibility for it.

One grandparent shared their strategy of investing a set amount for each birthday – that could be $100 at age 1, $200 at age two and so on (or whatever you can comfortably spare across all grandchildren), with the intention that the funds are turned over to the grandchild when they turn 21.

Education funds

Putting money aside for education expenses, whether for school trips, music lessons, or university fees, can provide a practical and meaningful gift.

4. Consider your legacy

Having a well-thought-out, current will ensures that your assets are distributed according to your wishes. If you want to leave something specific to your grandchildren – whether it’s a sum of money towards their first car or home, a piece of jewellery, or a treasured book collection – writing it down ensures your intentions are clear.

Be sure to update your will as new grandchildren arrive and review it periodically to ensure it still aligns with your wishes. If in doubt, seek legal advice to make sure everything is structured properly.

How you give is more important than how much

At the end of the day, what matters most isn’t how much you give, but how you give. Whether you’re offering financial support, life lessons, or simply your presence, the love and guidance you provide will shape your grandchildren in ways that last a lifetime. And that’s a gift no amount of money can buy.

Written by: Vanessa Glennie

Vanessa is Head of Communications at Lifetime Retirement Income. She’s an experienced investment writer, having spent more than a decade writing about financial markets in the global fund management industry.

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