Graduation season leaves many wondering what to get the newly minted grad. I have a suggestion: Give them the money they need to start an IRA. It's the gift that keeps on giving.

This idea comes from a chapter in my latest book “Hey! What's My Number?” It also stems from the frustration I felt every year my parents surprised their grandkids with a savings bond. The idea was to teach the kids how to save and invest. Now, we all know those savings bonds don't yield much when it comes to long-term investing. In fact, because they're worth more to me from a sentimental standpoint than from any measure of pecuniary value, I've never cashed in the savings bonds I received as a kid.

Upon granting their grandkids the usual savings bond gift, I'd tell my parents if they wanted to teach the kids to save and invest, give them shares in a long-term growth mutual fund. It wasn't until I started writing “Hey! What's My Number?” that I realized the true value of my comment. All my kids have had jobs as teenagers. In every case, I “encouraged” (as only a father can) them to max out on their IRA contribution. I don't know what's in store for them career-wise, but I do know giving them a head start on saving for retirement will benefit them in ways they may be too young to appreciate right now. But, in 50 years, they'll know the wisdom of their old man. Maybe they'll even use it to help their own grandkids.