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 academic 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, grandparents and guardians 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. These five 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
A prepaid debit card. Today's kids 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 geared 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.
Gold. Yes, gold. Do you want to give a child a present which will not only bring a sparkle to her eye but may also appreciate in the future? Then it is difficult to go wrong with giving the gift of gold. You can choose to give gold in a variety of forms from coins to gold bars. You can usually find a large variety of gold coins with impressions to match someone's interests. Some givers may even consider gifting gold in the form of jewelry. Whichever form the gold takes, it is essential to explain to a younger child that it is valuable and they should treasure it. Gold also presents a unique opportunity for parents to compare and contrast it to other assets such as cash, stocks bonds and cryptocurrencies. Talk about a conversation starter!
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 a 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. Don't worry that the child's portfolio will lack diversification. What's important are the lessons that can be gleamed from this fun and more meaningful first step.
Contribute to the kid's college fund. 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 or Coverdell Educational Savings Account (ESA). Each of these plans offers different benefits, so talk to a professional to see which one is right for you.
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. You may also wish to ask your financial advisor to set up an educational meeting with your child. Most will welcome an opportunity to share their mistakes and successes about a subject they are passionate about.
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.