During the holidays most of us think about giving. We choose presents for our loved ones, as I discussed last week in Part I of this three-part series, and we make donations to charities and social causes that move us. But this year, as you think about giving, consider spreading the gift of knowledge to someone you care about. Make a "present" out of the wisdom you've gained dealing with money, investing and personal finance.

FOR YOUNG CHILDREN AND TEENAGERS

Help them get started with savings and the basics of personal finance. Open a modest savings account for your young offspring and teach them about the importance of saving for the future. Teenagers should be learning how to budget their money, so you might consider starting them off this holiday season with a larger allowance (the "gift" part), and some assistance in setting priorities for spending and savings. A credit card - with the stipulation that they have to pay it in full every month - can also be a good gift with a great lesson in how to use credit wisely.

You might want to start teenage kids on investing by opening a small custodial account. Help them learn about the financial markets and the power of compound growth. Get them involved in making investment decisions.

FOR COLLEGE-AGED KIDS AND YOUNG ADULTS

If you have grown children in college or just entering the work force, guide them in how to get started on the biggest financial challenge they're likely to face - financing retirement. If your college student has a part-time job or works during the summer, open a Roth IRA (even if you have to fund it yourself) and help him or her learn to invest for the long term.

If your "child" is now in the work force, make sure he or she opens a Roth IRA or is participating in the company's 401(k) plan. A lot of young workers are strapped for cash, but the company match in most 401(k) plans and the benefits of tax-advantaged investing are simply too valuable to ignore. Again, your gift may involve some money to get the ball rolling, but the truly valuable part will be helping your offspring understand the basics of investing (the importance of diversification) as well getting some hands-on experience with the markets.

Another gift of knowledge for grown children could be help with comprehending the ins and outs of home mortgages. The turmoil within the housing market in 2007 underscores the importance of understanding mortgage finance. Young people looking to buy a home, especially in expensive markets, may be willing to bite off more than they can chew; you can assist them by weeding through mortgage alternatives. Continued...