I remember the first time my grandmother gave me a Canada Savings Bond for Christmas. My parents explained that Grandma has just given me $100! It was more than my five-year-old self could wrap my head around. Grandma gave one to each of her five grandkids that Christmas, and generously continued the tradition for many years to come.
Many of us consider the gift of money to be somewhat impersonal. However, giving money to our children creates an opportunity to teach them about saving, investing, and the value of a dollar. Here are a few suggestions for how to incorporate a little extra green into your family’s Christmas this year.
Cold hard cash
Our kids see us tap and swipe our way through the year, which makes the concept of money seem foreign, and perhaps even limitless (gulp)! It’s difficult for children to conceptualize the dollars and cents that are being exchanged when nothing physical gets handed over. Giving a child a little bit of cash allows them to better understand the value of money, and the true cost of the items they purchase. Encouraging your child to save for a special item can help instill a sense of responsibility, and a deeper understanding of the finite nature of money.
A gift that can grow
It’s no longer an option to follow my grandma’s example of giving Canada Savings Bonds, as the federal government stopped issuing them in 2017. However, an RESP contribution is certainly a worthwhile gift for a child of any age. Just be sure to let your child know about the contribution, taking the opportunity to explain how RESPs work, and the importance of planning for the future.
Another option is to open an investment account in your child’s name, and buy a small number of shares in companies that would pique their interest (McDonald’s or Disney would probably resonate). It’s a great chance to explain how the stock market works. You can monitor the stocks together throughout the year, teaching them about business in a fun and engaging way.
The gift of giving to others
Parents love to experience the holidays through the eyes of their kids, and it’s easy to go overboard in our efforts to make all of our children’s wish lists come true. The holidays are also a very challenging time for many, and it’s our responsibility as parents to live out the values that we wish to instill in our children. Take this opportunity to talk to your child about those in our society who struggle to have their basic needs met, and let them take the lead in choosing a cause to support. This year, our kids picked out gifts for children of similar ages who are spending the holidays in a shelter. Whether it’s donating to a local food bank, or sponsoring a child in another part of the world, teaching the importance of helping others could be the greatest gift you give your child this year!