One of the most crucial responsibilities parents have when it comes to raising their children is to educate them in such a way that they are ready to handle the complexities of adult life. While teachers address the usual academics subjects like reading, mathematics, and writing in the classroom, learning about economics and personal finances are left out of the majority of public school curricula. That means the responsibility falls upon parents to expose their kids to these essential lessons. The good news is that there are plenty of ways to help kids learn more about finances which don't have to wind up costing you a lot of money. These seven unique gift ideas will give your children a substantial advantage when it comes to financial security and money management skills in the future.
Financial Gift Ideas Kids and Their Parents Will Love
Contribute to a college fund for a newborn or toddler. While giving a child money to help pay for college may not be flashy like gold or even as cool as a stock certificate, it can help them in the future. Family friends and relatives can make contributions to the child's 529 College Savings Plan with a gift card from Gift of College. Each of these plans offers different benefits, so talk to a professional to see which one is right for you.
Give cash to young kids. Young kids love getting cash. Consider maintaining their belief in Santa Claus with a gift of Santa Dollars. Santa Dollars are legal United States tender. These special treasury notes have a Santa seal that covers George Washington, and each Santa Dollar comes with a card from jolly old Saint Nicholas.
Open a custodial account for a pre-teenager and purchase shares of stock in a favorite company. Introduce the stock market to a child by giving them real shares in the company which produces his or her favorite product. Not only will the child start their portfolio at a young age, but it is the perfect opportunity to sit down to have a meaningful discussion about how the market works and why investing is an integral part of financial planning. For adults who don't want to spend much money on stocks or who want an older child to gain real experience when it comes to buying and selling shares, there are several kid-friendly stock market simulators available online.
A prepaid debit card for teenagers. Today's teenagers are more independent than ever before. Give a child the power and responsibility to make his or her own financial choices and mistakes with a prepaid debit card. There are plenty of prepaid debit cards available, but try to find one gear specifically to kids. Many of these cards have added features which allow parents to view a child's purchases, block purchases at certain stores, and recharge the card when it is getting low.
Go digital for young adults. Find their favorite store or restaurant and buy a digital gift card to treat them to something you know they’ll love. Even if they’re harder to shop for, there’s nothing wrong with choosing a Visa or American Express prepaid cash card. Pair it with a heartfelt note to show how much you care. Tip: you may score a bonus for yourself when you buy a gift card for a loved one, especially during the holiday season. Many restaurants and retail stores offer a bonus card for you when you spend a minimum amount on a gift card for someone else.
Gift cards for newlyweds. In many cultures, cash is a traditional wedding gift. But, if you’re looking for more creative ways to give, check if the couple has set up a place to receive cash as part of their registries. Many couples set up gift funds to pay for honeymoons (often called “honey funds”) or other big expenses, such as a down payment. If the couple hasn’t set up a gift fund and you’re hoping to give money, consider a gift card to help them pay off student loan debt. Gift cards from Gift of College can be used toward student loan payments. This will allow the new couple to strengthen their balance sheet, which can benefit them if buying a new home is on their radar.
Books about money. While monetary gifts may increase the size of a kid's bank account immediately, providing solid financial education is worth much more in the long run. It is never too early to start helping a child to explore topics relating to money. There's a wide range of books which can help kids learn not only about the value of money but how to grow and protect what they earn. Choose a light-hearted picture book or an easy-to-read introduction about money for the elementary school crowd. For kids in middle school and above consider books on investing.
Whichever gift you give, make sure that it makes financial sense for you. Speaking to a Certified Financial Planner™ professional is the best way to determine how and when you should be giving monetary gifts to your children.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.