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5 Smart Financial Gift Ideas for Children


My wife Amy and I have nine wonderful nieces and nephews.  We realize that one of the most crucial responsibilities our siblings 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 academics 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 family to expose their children to these essential lessons. The good news is that there are plenty of ways to help children learn more about finances which don't have to wind up costing a lot of money. These five unique gift ideas will give your loved ones a  substantial advantage when it comes to financial security and money management skills in the future. 

Financial Gift Ideas Children and Their Parents Will Love

A prepaid debit card. Today's children 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 children. 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.  

My wife and I gave prepaid debit cards one year as a Christmas gift.  The cards included pictures of our nieces and nephews with us.   My sister's children saved the cards for their summer trip to Hawaii and used the cards to buy souvenirs.  Her children were very excited to have their own cards for their vacation. 

Gold. Do you want to give a child a present which will not only bring a sparkle to her eye but will 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. Parents may want to hang on to it for their children until they feel their child is responsible enough.

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 their 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. For adults who don't want to spend much money on stocks or who want an older child to gain real experience when it comes to buying and selling shares, there are several kid-friendly stock market simulators available online 

Contribute to their 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.  My wife and I often contribute to our nieces' and nephews' 529 plans as birthday and holiday gifts.  

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 explore topics relating to money. There's a wide range of books which can help children 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 children in middle school and above consider books on investing. 

Whichever gift you give, make sure that it makes financial sense for you. Speaking to a financial professional is the best way to determine how and when you should be giving monetary gifts to children. 

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten and Fintentional LLC. 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.