Holiday Gifts That Will Teach Your Children About Money
There are hundreds of new toys and tech products this holiday season, so there's sure to be something your tot or teen is begging for. But in addition to the Elmo T.M.X. (the latest and hottest version of Tickle Me Elmo) or the new Sony PlayStation3, consider getting your children gifts that will teach them about money and contribute to their future financial health.
Money magazine has these suggestions for gifts that will make your child richer:
Set up a 529 plan and make a generous contribution. Operated by states or educational institutions, 529 plans allow you to save for your children's education; the earnings are tax-free if used on educational expenses.
Open up a Roth IRA for your teenager with a part-time job. She can contribute her earnings of up to $4,000 a year — you'll get her in the habit of saving for retirement.
Is your child just learning the basics about money? Buy the book "Alexander, Who Used to be Rich Last Sunday." It's perfect to teach children ages 4 to 8 about the consequences of not saving money.
Board games never go out of style, and Payday is a good one for teaching kids about the "real world" of making and spending money.
Teach children about charitable giving at an early age. Make a donation in your child's name to the charity of her choice.
Video games more your kids' style? The Sims 2: Open for Business teaches children how to create and manage a business. It may just spark the entrepreneurial bug.
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