Gifts to Teach Your Children Financial Responsibility

Finding that gift that is just right can be a tiring and daunting task. Ideally, the gift will be much appreciated and valued for a long time. When looking for a gift for a child, you also want something that will do more than just entertain.

A major educational gap in our schools is the subject of personal finance. I learned the anatomy of a cow's heart, but not how to balance a checkbook. Guess which skill I use more often? This subject area is left to the student to learn on his or her own and often students enter college and the greater workforce without knowing anything about money.

Depending on the age of your child there are several gifts that you can give them to help prepare them for handling their money. If you are thinking that your child is too young consider that the younger the child the greater the financial impact of learning these skills.

Very Young

Thinking about this for very young children may seem strange, but the earlier one starts planning financially the greater the overall impact.

These gifts can be as simple as a piggy bank. At a very early age encourage your child to put coins into the piggy bank. My son started putting change into a piggy bank by age two and he loves putting coins in there. Every coin he sees goes in the bank.

At two years old he is in the habit of saving. Make this a treat for the child, cheer and praise the child when they put coins in the bank and of course, provide the child with coins to do so as often as possible.

Savings bonds make great gifts also. These bonds will take many years to mature, and can be used as a lesson on interest as the child grows. Current rates are easily available on-line from the Fed at www.treasurydirect.com.