Surprise your loved ones with special financial gifts in the holidays

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By: Good Nelly
on 16th Dec,2011

Read along to know about 6 financial gifts you can give to your kids.
Surprise your loved ones with special financial gifts in the holidays


Are you wondering what gift you'll give to your loved ones during the holidays? Are you trying to find that perfect gift for your children in this Christmas? Do you want to give a gift that will be really useful for your kids? If yes, then you can give some valuable financial gifts to your near and dear ones. Read along to know about 6 financial gifts you can give to your kids.

Useful financial gifts you can give to your children

A wise parent is the one who looks after the short and long term needs of children. A doting dad or mom will not waste money on frivolous gifts. Rather, he or she will buy a gift that will help to secure the financial future of his/her children. Here are some good financial gifts which you can give to your children in this Christmas. 

1. Create a savings account: Take your child to the bank and assist him to open a savings account. Stand in the line with your child and help him to complete all the formalities. This will make your child understand the value of money and a savings account in a person's life. When your child sees that the people working at the bank are really nice people, he will stop loathing the very idea of a savings account. Other than that, the whole experience will stick to his mind. He will have a positive association with the bank.

2. Give a new prepaid card: Has your college going kid demanded for a credit card? If yes, then a prepaid card can solve your problem to some extent. The best part of the prepaid card is that your kid can never misuse it. It is a great tool to teach financial discipline to the children. Your kid will use the card cautiously. This is due to the fact that he won't be able to use the card when there is no money in it.

3. Hand over a piggy bank: If your child is too small to have a savings account, then you can gift a beautiful piggy bank to him. You can ask your child to deposit a coin in the piggy bank every day. Tell your son or daughter that you'll buy another present for him/her with the money accumulated in the piggybank. This will induce him/her to deposit money in the piggybank everyday.

Piggybanks are a great way to teach children about the importance of money and saving. Make sure you purchase a transparent piggy bank. Your son/daughter can practically see how her/his ‘money plant' is growing.

4. Create an emergency fund: Teach the importance of emergency fund to your children and create one for them. If your children are working, then this is the right financial gift for them. Emergency funds help you meet the unknown expenses that may crop up at any place and at any time. So, in this Christmas, instead of driving to a store for purchasing a gift, create an emergency fund worth 4-5 months of income for your children. If your kids really face any unfortunate financial crisis after the festive season is over, they can use this emergency fund to resolve the problems.

5. Buy some good stocks: Sit with your children and explain them why you love to invest in stock markets so much. Explain how stock investments have helped you meet various financial obligations in life. Buy some stocks for your children after having a discussion with the financial planner. Include your children in the discussion. This way they will have some idea about how market works.

A good idea will be to purchase the stocks of the companies which are popular amongst the children. For example: Walt Disney and MacDonald. When your children get dividends from these companies, they will be ecstatic. They will be happier when they can get their favorite rides and burgers at discounts.

6. Go for an investment plan: This financial gift is apt for the children in their teens. Due to the increasing cost of the higher education, it has become essential for the parents to opt for the 529 investment plans. If you want your son or daughter to get the best education, then start saving money in a 529 plan from now onwards. If your child expresses his discontent over the nature of the gift, then explain that this gift will give him/her an opportunity to go to the best college in the country in future.

Finally, if your children have completed their education and are employed, then open a retirement savings account for them. If your children are in their 20's, then a retirement savings plan might be the last thing on their minds. They are more interested in enjoying the present moments rather than securing their golden years of life. However, you know how important it is to make financial arrangements for that period of life when one does not have the ability to work. So, create a retirement savings account for them and contribute some money into it. Once the account is created, ask your children to save some money every month for leading peaceful retirement years.   

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