By Olivia Glauberzon
Here are some fun gift ideas to start educating your kids about the value of money. As a bonus, a picture will surely make them happy when they grow up!
For Christmas, your children or grandchildren are probably dreaming of a state-of-the-art game console or robotic plush. But it is not with these kinds of gifts that you create memorable memories.
Why not instead help the child grasp an essential notion for his future? An idea, for example, like that of money.
It remains to find a gift on this theme that joins the useful to the pleasant. From books to board games to savings plans, the choice is endless.
The secret of a good gift with a financial theme is the pleasure aspect, says author Gordon Pape. This man is the co-author (with his daughter Deborah Kerbel) of the book Money Savvy Kids: The Best Ways to Teach Your Children About Money for a Strong Financial Future. His wise words guided the following recommendations for providing financial literacy at Christmas.
For ages six and under: offer books
Children five and under are just beginning to get a feel for the concept of money. But according to Gordon Pape, there are plenty of excellent books on the subject for this age group. Plum and Pocket Money by Séverine Vidal is a good example. In this book, we meet Prune, who wishes to receive pocket money in return for the services she renders to her parents.
There is also the book L’argent by Alexia Delrieu and Sophie de Menthon. In a fun way, this illustrated book answers many questions about money and advises on how to use it well.
For 7 to 12-year-olds: offer board games.
According to Gordon Pape, board games like Monopoly offer excellent opportunities to talk about money.
“Children learn the concept of financial risk, even if it is fake money. They also learn that having the biggest nest egg is not necessarily a guarantee of victory. »
There are franchise-themed editions that kids love for many classic board games. In the case of Monopoly, there is notably a Star Wars edition and an Avengers edition.
For ages 9-11, we recommend slightly more complex games, such as Catan. In this game, we build colonies, cities and roads. But for that, you have to exchange resources and materials: brick, wood, wool, grain…
“It’s not about the money per se. But there is the notion of resources. Children learn to use strategy in their choice of building materials. »
For teens and tweens: offer an allowance in the form of a card
Reloadable prepaid cards are a great gift idea, according to Manisha Thakor of MoneyZen Wealth Management. Budgets in this form teach children about financial responsibility.
“You can put a minimal amount in it. »
Unlike real credit cards, prepaid cards allow you to use money that belongs to the holder. This is not borrowed money. As with other cards, you avoid walking around with a wad of cash.
This gift also allows children to connect cards and real money at a young age.
It is also a way to learn the basics of a budget. The teenager who embarks on crazy spending risks quickly reaches the card’s limit.
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There are activation fees, monthly fees, or transaction fees for many prepaid cards. There are also some whose use is restricted. It is, therefore, better to shop around for your card.
For children of all ages: open an RESP
Instead of giving kids a gift, they’ll quickly lose interest in, why not invest in their future? You can do this by opening a Registered Education Savings Plan (RESP) in their name.
But what is an RESP? It’s a tool to save for a child’s post-secondary education, tax-free. The money will only be taxed when the child withdraws it from the account. The tax rate will be determined based on his income (low or non-existent), not yours.
In addition, with the Canada Education Savings Grant (CESG), the federal government offers you the equivalent of 20% of your annual contributions for each child. The ceiling for this grant is $500 per year and $7,200 for life. Therefore, we are talking about thousands of easy-to-obtain dollars that will grow as long as they are in the RESP.
How to use crowdfunding to pay for your children’s education
RESP FAQs
You can also ask grandparents, relatives and friends to contribute to the RESP instead of buying gifts.
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