Tag Archives: finance

Financial Gift Ideas for Young Children

Posted on by 3 comments

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!

A Gift That Keeps on Giving

Posted on by Leave a comment

Christmas is less than a week away.  Although it’s celebrated on the same day each year, somehow it still sneaks up on us.  If you’re like me, there may be a few people on your Christmas list that you are challenged by – you simply don’t know what to buy for them.  Instead of buying one more sweater, scarf, or toy, consider giving a financial gift that will continue to give well beyond Christmas day.  A few suggestions include:

  • Purchase a savings bond.  While it is not an aggressive or high yielding investment option, it does earn interest.  Additionally, it is exempt of state and local taxes, and federal taxes are deferred until the bond is redeemed.  In the book Rags to RICHES, we stress the importance of practicing wealth building behaviors (i.e., saving and investing).  Savings bonds will not likely make you rich, but they do promote wealth.  Remember, small changes can create big results
  • Buy a share of stock.  What does the person love?  Are they avid patrons of Starbucks or McDonald’s?  A common recommendation when purchasing stock is to buy stock in what you love or support.  To purchase a single share, visit www.giveashare.com
  • Give a financial book or a subscription to a financial magazine or newspaper.  Knowledge is power and you can’t do what you don’t know.  You also don’t know what you don’t know
  • Contribute to a child’s 529 education savings account.  This will require some coordination with the child’s parent, but it’s worth it.  A 529 education savings account is a tax deferred investment account that is designed to help families save for future education expenses.   If the child doesn’t have one, consider giving an initial investment.  Many times we give children toys or things that may keep their attention for a short while, but in all likelihood, before the holiday break is over, the toy is broken, lost, or put aside.  Invest in a child’s future.  They may not fully understand it now, but they will thank you later
  • Buy a gift certificate for their favorite charity.  Is the person on your list passionate about a cause?  Perhaps they have been personally impacted by cancer.  Think about what’s important to them.  If you don’t know, ask.  Gift cards for charitable donations can be purchased through www.charitygiftcertificates.com

Christmas is the celebration of Jesus’ birth.  The practice of giving gifts can be traced to the gifts that the three wise men gave to Christ.  Although each had a significant spiritual meaning, they were also very valuable.  As we make a mad dash to finalize our preparations for the holiday, consider giving a gift that keeps on giving.