Christmas gift giving for kids are becoming more and more practical nowadays. Along with this perspective in giving gifts, money has become one of the ready and easier options to choose, at least on the side of the gift-giver. Without the need to fall in long lines to shop, gift givers provide children-recipients the chance to choose what they want to buy for themselves. Since it is never too early to teach children sound finance principles, here are some suggested ways parents can encourage children to use their Christmas money gifts wisely.
Buy Something Useful
Children have a tendency to spend their money just for the sake of buying. Parents can advise their children to put together all the money gifts they receive and help them choose something useful to buy. Things that will be used for a long time are highly desirable. One good buy is more sensible than several unnecessary purchases.
Parents however should take care not to totally deprive children of the simple joy of buying something they would really love to have. They can buy toys but parents can advise them to choose sturdier ones instead of pretty toys that wouldn’t even last a day in the hands of a child. Older children can be advised to buy things they would actually need and use.
Open a Savings Account
Christmas is usually an opportune time to encourage kids to start saving systematically. Opening a savings account in a bank gives more impetus to save than maintaining a coin bank at home. This can be followed up by advice to save a part of school allowance to inculcate the practice of saving.
Seeing their money grow can be very exciting for the kids. It can a start of a lifetime savings or a fund to purchase bigger ticket items in the future. Whatever the decision, it is always best to emphasize the need to save a part of whatever money they receive not only during Christmas but all year round.
Buy Some, Save Some
Of course there is always the happy compromise which is to use part of the money to buy something and part for savings.
Educating our children in handling their money provides a good foundation for sound financial habits in adulthood. Parents will be helping their children succeed in life if they are made to understand the importance of proper handling of money. Although children can always argue that they have every right to decide what to do with their Christmas money gifts, parents will always have that responsibility to lead them to the right path.