Gifts That Will Make Your Kids Rich

jeffrey · #1 (**permalink**) 11-28-2006, 10:55 PM

With the holiday shopping season upon us, it's time to get those perfect gifts. While the kids likely have a long list, you may want to add a couple of these to their list: Great gifts that will help make your kids rich:

1) Roth IRA: Get your kids started early and they will thank you when retirement comes around. The kid must have earned income and can contribute whatever they make up to $4,000 a year.

2) Alexander, Who Used to Be Rich Last Sunday" A book for 4 to 8 year olds which tells a story of a boy who receives $1 and plans to save it, but instead caves in to temptation and spends it - only to regret doing so later.

3) Payday Board Game: Playing this game kids will learn to budget, borrow (with interest) and save while learning the perils of squandering their money. Best of all, they will be doing it while playing a game so they'll be having a great time doing it.

4) The Sims 2: Open for Business: Lets kids create and manage a business and thus learn the challenges of entrepreneurship. They will learn everything from hiring and firing to devising an effective marketing strategy.

5) Contribution to a 529 Plan: Like the Roth IRA, they may not appreciate the gift this holiday season, but when they graduate with far fewer loans than their friends, they will tell you it was one of the best gifts you ever gave them.

via money.com

poundwise · #2 (**permalink**) 11-29-2006, 06:21 AM

Some additional ideas:

PAYjr: Teach Kids and Teens about Personal Finance

Dave Ramsey's online store: Youth Resources

Treasury Direct: Savings Bonds as gifts

fairy74 · #3 (**permalink**) 11-29-2006, 10:22 AM

I think one of the greatest gifts you can give kids is free: showing them how to budget, for example if they earn their own christmas money (or if you give it to them) show them how to sit down and plan. This doesn't make christmas gift giving less fun, but more because they are focused and learning the value of money. Also you spending time with them is a priceless gift in itself. I agree with poundwise baout the savings bonds, I buy them for my nieces and nephews each Christmas and birthday, with one small fun present and one needed clothing item.

scfr · #4 (**permalink**) 11-29-2006, 10:51 AM

What about the old tried & true 4 glass jars system for the young ones?
1 = Pocket Money (can be spent anytime, on candy, etc)
2 = Short Term Savings (for a video game, bike, etc)
3 = Long Term Savings (college)
4 = Donations

HalMd · #5 (**permalink**) 11-29-2006, 11:11 AM

For very small kids, a piggy bank: It teaches saving, and the act of redeeming coins for dollars provides an opportunity to discuss money.

MairGrif · #6 (**permalink**) 11-29-2006, 04:33 PM

I agree, giving children the knowledge of how to save, and money that they have to wait to receive, are both powerful gifts that grow over time. I offer one caveat on savings bonds, something my grandmother found out the hard way - after the first year (after they are purchased), there is no restriction on how, why, or when they can be redeemed. So if the parents decide to cash them in and use the money, they can, or if the child turns 18 and cashes them in to go on a trip, rather than go to college like they were intended for, they can. Grandma found out a family member had done just this, and she there after set up college funds for each grandchild, so part of our holiday and birthday gifts were money deposited into our account. Just a friendly warning.

Marianne

PrincessPerky · #7 (**permalink**) 11-30-2006, 10:24 AM

How about a debt free mom and dad? IF you let them in on the journey you will be teaching them the skills they need to do the same.

Aleta · #8 (**permalink**) 11-30-2006, 11:35 AM

My son still has his piggy bank in his old bedroom at our house, and is now getting ready to give it to his first child. Isn't that great. He still has the savings bonds that we bought when he was little. We did it with pennies rolled, saved, and eventually bought EE bonds back then. Our total outlay for the bonds was $206.25 and is now worth $984.00 Two of them has just matured. He wants to cash it in and put that in his childs name. When people tell him that pennies don't count, he gives them a different story. There was a time that his ex-girlfriend used to kick any pennies out of her car. He was horrified. She said they were useless. Anyway, I said she is an ex. He married someone else.

poundwise · #9 (**permalink**) 11-30-2006, 12:06 PM

You know what gifts will really make your kids rich?

1) Don't waste money on excess during the holidays, etc. Give more than lip service to the 'important' things like family and love.

2) Don't get them everything they want.

3) Don't have a hectic holiday. Keep it simple. Spend time with them. As a matter of fact, do this with life too.

Just some thoughts.

PrincessPerky · #10 (**permalink**) 11-30-2006, 05:51 PM

Quote:

Originally Posted by poundwise

You know what gifts will really make your kids rich?

1) Don't waste money on excess during the holidays, etc. Give more than lip service to the 'important' things like family and love.

2) Don't get them everything they want.

3) Don't have a hectic holiday. Keep it simple. Spend time with them. As a matter of fact, do this with life too.

Just some thoughts.

Excelent list.

scfr · #11 (**permalink**) 11-30-2006, 05:51 PM

Quote:

Originally Posted by PrincessPerky

How about a debt free mom and dad? IF you let them in on the journey you will be teaching them the skills they need to do the same.

Very good advice!

PRICEPLUS · #12 (**permalink**) 12-01-2006, 12:29 AM

Thanks for all the good info!

markio26 · #13 (**permalink**) 12-01-2006, 11:39 AM

wonderful comments!! i try to set a good example for my kids, at all times.. even telling them the truth, when they would have been more comfortable with a lie... the bottom line is good communication, honesty, reality, and alot of love... i tell them what money they will receive for whatever the occasion maybe, and don't buy me a thing, put the money on their kids or invest it....