Christmas Gifts that Teach Your Kids About Finance
Teaching children about financial literacy has benefits and life changing effects in the long term. It is a good idea to invest in some creative ways for your child to understand the difference between saving, spending and giving back. With the Christmas season around the corner here are some gifts ideas that can teach your child about finance and enrich their lives for the future.
There are some popular board games that teach your kids about money. Monopoly teaches about buying property and investing in things instead of holding onto cash. The Game of Life teaches about expenses incur in one’s lifetime that center around living, learning, earning and loving. Pay Day teaches about earning an income, paying off expenses and dealing with unexpected life occurrences.Although they are still games, they do teach the value and importance of strategy.
Buying a stock that your child is familiar with, such as Disney, can help them understand how to invest in the stock market. You can start off with purchasing a small amount and monitor their progress as they purchase more stocks. Parents can also purchase an RESP at Heritage Education Funds, explain the concept of investing, and the payout at maturity time.
Rock, Brock and the Savings Shock is a kids book is about two twins; one saves, and the other spends. The Coin Counting book teaches kids about coins in circulation and ultimately about saving and spending.
A great way to teach young kids about the simple concept of saving and spending. Whether they get money from the Tooth Fairy or birthdays, they have an opportunity to learn financial literacy at a young age. Once the child has a good grasp on the piggy bank method, parents can move to the Three Jars system and label each jar as saving, spending, and giving.
Explain to your child that Christmas is also a time to give to the less fortunate. By giving a gift or making a donation in their name it teaches them the importance of improving another individual’s life.
For less than $50 there are many creative ways to teach your child about saving, spending and giving back. The earlier you start the more knowledge they have to make better financial decisions.