Category Archives: wealth

Financial Gift Ideas for Teens

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Last week’s Post focused on financial gifts for young children.  As I reviewed the hits on my blog and the terms that people used in search engines, I realized that a post on financial gift ideas for teens would be beneficial as well.  For most teens, a gift card or money is a welcomed gift, but what happens when you ‘fork’ over the cash?  While I guess it qualifies as a financial gift, in most instances, the gift does not last beyond the holiday break.

 I’ve lost count of the number of times that I’ve heard parents say their teens do not have good money management skills.  As a parent of a young child, I will admit that I don’t have the personal experience of raising teenagers.  However, I do believe that parents often contribute to their teens’ money habits through the act of setting boundaries or giving in to their every whim.  If you’re looking for ways to teach your teens about money and investing, the following gift ideas may be helpful:

Contribute to a 529 Education Savings Plan or purchase a Certificate of Deposit (CD).  If asked, your teen will likely say, “Give me the cash now!”, but this type of monetary gift will serve as a lesson in understanding the ‘big picture.’  As your teen prepares to transition to college, I am a firm believer that they should have some ‘skin in the game.’  Even if you have invested and planned for your child’s education, it’s important that they understand and appreciate the sacrifices you’ve made on their behalf. 

A 529 education savings account is a tax deferred investment account that is designed to help families save for future education expenses.  If you haven’t set one up, there’s no time like the present.  If you decide to purchase a CD, it’s important to shop around.  A CD is a type of account that yields a higher interest rate than most savings accounts, and requires that your initial deposit is invested for a fixed period of time.  If you’d like to compare CD rates, bankrate.com offers up to date information on rates and reviews.  Please note that most banks will charge an early withdrawal fee if the CD is redeemed before its maturity date.

Purchase a book on investing and open an investment account.  We often feel that we have to have a lot of money to begin purchasing stock.  I recommend starting small.  Sharebuilder is a great option for someone starting out because there’s no minimum deposit or investment amount.  In addition to allowing you to invest ‘your way,’ the site has a plethora of resources that can assist you in making sound investment choices.  A book that has received good reviews and may be helpful to teens is The Motley Fool Investment Guide for Teens: 8 Steps to Having More Money Than Your Parents Ever Dreamed Of .  This book along with an initial deposit in an investment account may be a good igniter to help your teen begin investing in their future.

Purchase the Pretend and Play Checkbook.  This gift was featured in the post, Financial Gift Ideas for Young Children.  While your teen may perceive this as a joke, the gift can serve a great purpose.  If your teen is preparing for college, in all likelihood, they will have a checking account at some point.  This ‘checkbook’ can be used to practice managing their money for college preparation.  For instance, as a part of the gift, I recommend adding a beginning balance.  The money should be ‘earmarked’ for college expenses (e.g., college tours, applications, etc.)  As they begin to incur expenses, help them manage this ‘account’ by adding deposits on a periodic basis.  Their ability to manage their Pretend and Play Checkbook will assist them in managing the real thing.

Purchase the game of Monopoly.  I’m sure that we’ve all played Monopoly at least once in our lifetime.  Why is this important?  The game of Monopoly teaches players how to strategize and the art of negotiation.  It also teaches the most important factor in purchasing real estate – location, location, location.  Although this game is older than many of us, it is still relevant. 

I hope these gift ideas are helpful.  As we prepare to give, let’s also look for opportunities to educate those we love.  While they may not welcome your new approach to giving, they will thank you later.  We’ve all experienced being a teenager and assuming that we knew what was best.  As we matured, we realized that our parents did know a ‘thing or two.’  Your teen will arrive at the same revelation at some point; it’s only a matter of time.

Financial Gift Ideas for Young Children

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Parents are their children’s first teachers.  I know I don’t have to tell you that they watch EVERYTHING we do, say, and even the things we don’t do or say.  Because our children are always watching, we often have to find ways to incorporate teachable moments in the least suspecting places.  Christmas time is one of those occasions when parents can incorporate educational opportunities through the act of gift giving.

A key principle for Rags to Riches is to leave an inheritance for future generations, but in addition to establishing a legacy, we must teach children how to be good stewards of what they have.  The earlier we begin teaching our children sound financial principles, the better off they’ll be.  The reality is whether we intentionally teach them or not, many children adopt the financial habits of their parents.  If you are struggling to ‘make ends meet’, I know this is not the future you want for your children.  That being said, I ask you to be open to trying something new.

As you finalize your Christmas shopping this year, consider incorporating at least one financial gift for each child you plan to buy for.  Included below are some pretty cool gift ideas that are affordable, educational and fun:

Piggy Banks – Every child should have a piggy bank.  There are numerous options available, from the most traditional to the talking ATM machine.  I’ve highlighted two types for your consideration:

  • Money Savvy Pig – While this bank doesn’t talk to you or include flashing lights, it helps children develop the habit of allocating their money to key categories – saving, spending, donations and investing.  If children are taught this key principle from the beginning, it becomes second nature and they will always approach money in this manner.  This is a gift that qualifies as a life-long blessing!
  • Summit Zillions Deluxe ATM – This bank incorporates all of the bells and whistles that we have in a real ATM machine.  Although the Money Savvy Pig is my first choice in banks, this is definitely a contender.  Because of the interactive components of this bank, children will seek opportunities to earn money just to deposit it into their bank!

Pretend and Play Checkbook – Children are always looking for opportunities to be ‘grown up’ like their parents.  Think about it; how often do you see young children playing house?  The Pretend and Play Checkbook includes checks, deposit slips, check register, pen and calculator.  While reading the reviews on this item, I was extremely impressed by one couple’s approach.  In addition to giving the checkbook to their child, they included a beginning balance.  Each time the child asked for money, they had to evaluate if there was enough money in their ‘checking account’ and determine if their ‘want’ was worth reducing their balance.  Now that’s a real life experience!

Cash N’ Carry Wallet – My son is always asking if he can carry a wallet like his dad.  This year his wish will be granted.  We have been looking for ways to teach him basic money principles and I think this gift is a perfect way to educate him in a fun and interactive manner!  The set includes play bills in various denominations and plastic coins that are close to the real thing.  It also includes a Visa and Cash Card as well, which just might be the perfect way to introduce the concept of credit management.

Toy Cash Register – There are numerous choices in toy cash registers and children love them!  While completing my research for this post, I was most impressed with Learning Resources Teaching Cash Register.  This toy touts all of the bells and whistles!  Children will be engaged for hours with creative play while learning basic math concepts and money recognition.  In addition to including make believe cash, this toy has a scanner for coupons and credit cards and a scale that really works!  I’m sure that this toy will put a smile on a child’s face even if it’s not the first choice on their Christmas list.

While the gifts highlighted in this post are clearly for younger children, I hope you’ll seek opportunities to give financial gifts to the older children in your life as well.  It’s never too late to start, and many times, sustainable change is accomplished through taking ‘baby steps’.  Please join me in adopting a new principle this year and blessing our children with a learning experience they won’t soon forget!

Place Your Goals Under Arrest!

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As we prepare for the Christmas holiday and the end of the year, many of us may be measuring how successful we’ve been in achieving our goals.  If you haven’t experienced the growth you expected this year, it’s time to figure out what’s really holding you back.  We all start out the year with great intentions, and I would even venture to say that most of us even have the appropriate level of commitment in the beginning.  However, something happens and we allow outside forces to stop us from continuing to pursue our goals or we are stopped by something within us.

I have recently been reading a book titled, An Enemy Called Average, and in one section of the book, the author has a list of questions that he charges the reader to answer.  While reflecting on the things that often stop me when I think I’ve hit a stride, I decided to raise the following questions to you:

  1. What one decision would you make if you knew that you would not fail?  –  FEAR
  2. What one thing should you eliminate from your life because it’s holding you back from reaching your full potential?  –  DISTRACTIONS
  3. What good thing have you committed to do that you’ve quit doing?  –  ENDURANCE
  4. How have the people you respect earned your respect?  –  RELATIONSHIPS
  5. What are your gifts, talents and strengths?  –  PURPOSE

Take some time and answer these questions for yourself.  In your responses, I’m sure that you will find the answer to what’s holding you back.  Next to each question, I’ve listed a factor that has to be addressed if you want to achieve success.  Let’s take a closer look below:

FEAR – At some point, we all have dealt with the fear of failure.  F.E.A.R. is merely false evidence appearing real.  However, when we experience it, it feels very real.  Make a commitment to yourself to move in spite of the fear.

DISTRACTIONS – I know that I’m not sharing any breaking news when I say that life moves at a rapid pace and is often full of distractions.  To achieve anything in life, you have to learn to move past life’s distractions.

CONFIDENCE – Become your own cheerleader.  There will be times when you may be disappointed to find out that the people you thought were in your corner are not.  Naysayers are a reality, but you have to believe in yourself and know that the naysayers can’t keep you from your destiny.

ENDURANCE – I think endurance and consistency go hand in hand.  Don’t worry if you find yourself falling short in this area because endurance is developed over time; you have to work at it.  No one runs a marathon without practicing.  The same concept applies when we set out to accomplish our goals.  The more we work at it, the more endurance we’ll build over time.

RELATIONSHIPS – If you’ve followed my blog, you’re familiar with the phrase, “iron sharpens iron.”  Check the company that you’re keeping.  If they are not goal oriented, it very well may be the reason you’re having trouble achieving your own.

PURPOSE – This is merely my opinion, but if your goals are not aligned with your purpose, you may have a difficult time reaching them.  I think our inner-compass prevents us from moving forward.  If you feel like a hamster on a wheel, it may be time to assess if your goals are derailing the journey to your destiny.

There’s officially one month left in 2011.  If you have fallen short in accomplishing your goals, spend some time reflecting on the questions included in this post and make a commitment to start again.  In the book, An Enemy Called Average, the author states, “Thoughts lead to purposes; purposes go forth in action; actions form habits; habits decide character; and character fixes our destiny.”  Let’s adopt this principle, recalibrate and try, try again.

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