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Arming your children with a strong foundation in financial literacy will set them up on the path to make smart and informed decisions about money once they become adults. Here are a few practical gift ideas that will encourage your child to play an active roll in their financial future.
Perhaps one of the simplest, and most effective, gadgets for teaching young children the importance of saving is the piggy bank. Young children love seeing their change add up when they drop it inside a piggy bank. That fun, inviting, smiling pig practically begs for your little one to feed him. If you want to make the notion of saving even more fun for your children, you can invest in personalized piggy banks with their names, nicknames or a fun little slogan. Purple Pumpkin Gifts, http://www.purplepumpkingifts.com/, is an example of a company offering personalized banks and other fun gifts for kids. An interactive piggy bank with lights and sounds will also encourage little ones to save even more money in the long run.
A gift card is a great gateway to debit cards and banking for young adults. In lieu of tangible gifts, encourage family and friends to load a pre-paid gift card or debit card for your child for their next birthday. Put your child in charge of their gift card, and show them how to go online or call to check their available balance. You should encourage them to keep a small notebook and pen handy, and show them how to deduct receipt totals from the available balance as they make purchases. With proven success in managing a gift card responsibly, they can graduate to having their own bank account.
Spend, Share and Save Jars
Once your child is earning a regular income, you can purchase and decorate three jars to teach the importance of dividing up income. There are also apps and websites that can virtually and digitally perform the same service. The save jars are to be utilized for future spending on larger purchases. The share jar is for charitable contributions or gifts, and the spend jar is expendable income for your child.
Any time is the right time to teach age-appropriate tactics on saving and spending to your children. In fact, the earlier you lay the foundation for financial literacy, the greater the chance that these tactics will become second-nature habits.