Christmas is around the corner and this is the time when parents plan to gift their children something unique and useful.
The gift is something which should be cherished in coming years also. This Christmas why not gift your Children something which is just more than a gift and more valuable which can help them in future.
Educating kids about money is very important and guiding them to use in a right manner as well.
Many parents fail to provide enough knowledge on savings and compounding of money at the early age. Here are some interesting financial gifts which will help kids to develop the money saving habits.
Depending on the age, one can gift a piggy bank where kids can save small amounts regularly in the piggy. This will create interest in saving money.
Parents can make it more interesting by buying a favorite color piggy. Informing them that once the piggy bank is full, they can buy their much-awaited toy or something.
Explaining the importance of saving is also important along with gifting piggy bank.
Kids Savings Account
As banks are providing savings account for kids, most of the banks also issue debit cards for kids above the age of 7 years. Parents can introduce them to kids savings account. Where they can learn safe ways to accumulate savings by teaching them money management in the early years.
Kids can monitor, learn and understand how their money grows with time and with less risk.
In a market, one can find simple finance books with examples and pictures, just for kids. The explanation will be simple and will be easy for kids to understand.
Invest in SIP
This may not be a physical gift, but Systematic Investment Plan (SIP) can be really helpful in the long run. There are many mutual fund houses which are made specifically for kids education or future.
Make sure the amount you fill is reasonable and can fulfill the need of the kid. This will build a responsibility in kids on choosing the product within his limits.