CHRISTMAS is here! And you can't figure out what to gift your parents and kids? Well, we have a smart gifting strategy for you: how about some money?

Not in cash though! That's too predictable, not to mention tacky.
wealth put together some smart suggestions on how to give financial gifts a meaningful spin.

For your kids

1. A bank recurring deposit
"Exposure to the basics of banking and managing money, could be the best thing to gift your kids," says Certified Financial Planner Gaurav Mashruwala. Start with a bank recurring deposit.

If you are wondering: will my child accept this with a smile, read on. "Let your kid walk to the bank every month to make the deposit. This way he'll feel more responsible about the money and will also be thrilled to see it grow."

2. A child insurance plan
This will ensure that you are putting away enough for your child's future. When he grows up and needs the money for his education or otherwise, you could give him what is his, by acting as the legal guardian. This will also give you a sense of pride!

Mashurwala suggests, "When buying a children's plan, make sure to buy the plan in your own name rather than in your child's." Of course, your child is not going to be very pleased with it, yet. May be a little toy could complement this gift.

3. Mutual funds, a good bet
If you'd like to gift him something that can create a decent amount of wealth, you could make an investment for a specified time period.

PV Subramanyam, a financial domain trainer believes that more than the type of financial gift, what is important is when you would like to encash the gift.

He further explains, "If your kid is three years old then you could buy some equity mutual funds with an aim of keeping it for the next 18 years till he turns 21. This will give your investment a decent time (about 18 years) to grow to a sizeable amount. A balanced equity fund could be a good bet."

4. Money management lessons
Making children aware and careful about money and financial management, can be a great gift. Reserve Bank of India has introduced two comic books, Raju and The Money Tree and Money Kumar and The Monetary Policy, which can be downloaded from the bank's web site for free. These books will help your kids learn their basic money lessons and also, help them make better financial decisions.

Read: What are the various small savings scheme?

Photograph: Getty Images

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e-mail: Team Wealth

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