It may seem simple, but sharing financial lessons in fun ways with your family and friends can help lead to a lifetime of better money habits by those you care for the most. With nearly everyone feeling some impact from the COVID-19 global pandemic, the upcoming 2020 holiday season is a perfect time to introduce children and adults alike to gifts that can help them become more financially savvy.
The sooner you begin teaching children about money, the better you will position them to handle financial matters later in life. Andrea Woroch, a consumer savings expert, uses a piggy bank and other means to teach her four-year-old about the importance of saving. Because most educational systems don’t teach finance in elementary school, learning to be smart with money needs to start at home.
Here are five fabulous money-savvy ideas for everyone on your list:
Piggy Bank
One easy way to talk about money at home with younger children is with a piggy bank. It’s a great visual reminder of the importance of saving some of what you earn or receive. “I’m teaching my daughter about saving her money,” Woroch says. “We talk about what she could buy and how the more she saves the more she could buy with the money later.” If you decide to give a piggy bank as a gift, adding some coins or cash would make it even more memorable. Or, look for a piggy bank that has different compartments for saving, spending, investing and giving.
Stocks and Fractions
Introducing middle-school age children to the buying and selling of shares – or fractions of shares – is a good way to help them overcome any fears they may have of the stock market, Woroch says. “It helps people become more comfortable with the concept of buying and selling shares.” To get your feet wet without dropping a ton of cash, consider using a company with a low minimum. Stockpile is a brokerage firm that allows you to buy fractional shares of stocks for as little as $5. They even offer gift cards so you can give an e-gift or a physical gift card redeemable for stock. Kids and teens can track their stocks 24/7 and place trades that you approve. They can also share a wish list of favorite stocks.
