It’s always hard to know the latest fad in toys, technology or clothing when shopping for Christmas gifts for children or teens. One good alternative it to give them something that will help them save and invest money instead of just spending it.
In the latest Parents, Kids & Money Survey from T. Rowe Price, the vast majority of parents say it’s important to have discussions with their children about saving and spending money. Since the pandemic, a record number of parents—47%—said they are having money conversations with their children each week, reports Kiplinger.
Tips for Parents for Christmas financial gifts
Here are a few options from “The Epoch Times”:
- A wallet may seem mundane, but it represents fiscal responsibility. Teach them that the wallet is important and what it represents. It’s the keeper of money and important documents and must always be held and guarded. Children probably will receive multiple gift cards, so show them the slots in the wallet where they can keep them. Help them organize the cards. Remind them that gift cards are the same as money and, therefore, go into the wallet.
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- Charitable donation. Making a charitable donation in a child’s name is commendable, but it’s even better if the child picks the charity. Choose a list of appropriate charities you think the child will like. Then sit down with them and explain that you’re going to make a donation to one of these charities in their name, and they will choose which one. This opens a discussion about values and priorities as you decide which charity to give the money.
- Financial advisor meeting. This one is for your older teens or college-age young adults. Buy an hour of a financial adviser’s time and let your teen meet with them on their own. Young people have questions about their future, and financial questions are part of it. Most don’t know where to go to have them answered. In fact, many don’t know what to ask. A financial adviser can teach them basic concepts such as creating budgets and managing credit.
- With the help of the child, choose one stock (or more if you’re so inclined) that they’re interested in and purchase it. You might select several stocks and then let the child choose one. A young child might be interested in stock from a video game manufacturer, movie studio or cellphone maker. An older child may be interested in discussing how the stock is performing. Either way, it opens a conversation about investing.
- 529 college savings plan, Contributing to a 529 college savings plan is a gift that keeps on giving. The money grows tax-deferred through the years. It can be used tax-free for college tuition, room and board, and other college expenses.
Financial education should start early, but it doesn’t have to be a boring education. Whether it’s choosing a charity to donate to or picking a stock to buy, it empowers children and lets them dip their toes into the financial pool.
–Alan Goforth and Epoch Times