Every year, my grandmother gave me a $5 bill in a Christmas card (it went up to $10 when I was an adult – bless her heart!). Financial gifts can be a great tradition for families. It helps kids learn how to manage money, builds responsibility, and may help build future goals. I put together 5 Financial Gift Ideas For Kids which might make gift giving a little easier…
TD says financial gifts can be a great tradition for families as it helps kids learn how to manage money, builds responsibility, and may help build future goals.
5 Financial Gift Ideas For Kids
- Baby Shower RESP. This is what our friends did for us – and it was an amazing and unique way to kick start an education fund. In lieu of presents, friends gave cash for a Registered Education Savings Plan (take note: the government adds to your savings with grant money so the sooner you start the better off you’ll be when college/university time comes around).
- Piggy Bank. Save up your spare loonies and toonies all year and put them in a piggy bank and wrap it up as a holiday present for the child in your life. Counting all that change develops math skills like grouping and adding (it’s also a great boredom buster!). A Piggy Bank would also encourage them to save up their spare change as well!
- First Bank Account. Make this gift an “event” by taking your child out for one-on-one lunch (kids LOVE special time together). Then, go to a local bank branch and open up their very first bank account. This is a gift which makes them feel important. Then, make a tradition, every birthday – to go out to lunch together and make a small deposit to add to their savings.
- Teen Travel Fund. As a Mom of a teen, I highly recommend this one. Parents and grandparents can open a bank account or give the gift of cash for a teen for a travel fund. From money to take the subway to the movies to saving up for a class trip to that summer in France everyone wants to go on one day…a travel fund is a great one-size-fits-boy-or-girl-teen present. Also, easy to give when you are seperated by geography.
- Grandma’s cash in the Christmas card. Grandma had it right – cash is instant and available. No special packing. No waiting in a check out line. No returns to the store because it isn’t the right fit. Giving the gift of cash to a kid is quick and easy. It also helps build decision making skills…do you spend it right away or save it for something in future?
As children get older, parents can expand the money management conversation with their children to cover more complex issues, such as budgeting and setting spending priorities, building up to things like investing early, the value of a dollar and the power of compound interest. Visit TD Canada Trust for products and services pertaining to giving financial gifts to kids.