6 great financial gift ideas for your kids

by news
•
September 11, 2018

It’s easy to surrender to the shiny toys when shopping for the children in your life. Or you might be enticed to give your youngsters cash, rather than battling it out in the shopping centre or chasing for the ideal gift online. But with a little thought, you can gift your children something that is not only valuable but can also teach them the worth of money as early as today.

The answer lies in “Financial Gifts.”

Financial gifts can help them in many ways- pay for college, spark an interest in saving and investing or travel across the world. Most importantly, your child will thank you because you are invested, both financially and physically in the things that are important to them.

So, consider these six gifts that could reap big rewards for them in the future:

  1. ATM Savings Account
    A more modern version of piggy bank is opening an ATM savings account for your child. Top banks now have special bank accounts for the little ones, and they come with valuable perks. Further, you can also opt for an ATM     Debit card.
  2. Stock in a Company of Their Choice
    Have you considered gifting your kid something that can increase over time? If yes, stocks can be that gift. Especially if your child is a bit older and you want him/her to go beyond the saving and spending lessons and learn about investing. Gift them an amount that they can use it to purchase stocks. Here, the aim is not to make your kid a trader but to help them understand stocks better, so he/she grasps the more important lessons of continual investing. 

  3. Child Education Plan
    Education is the most treasured gift you can give to your children. However, the rising cost of education can harm their long-standing ambitions. To meet the educational expenses conveniently and to promise your child a bright future, you can invest in ‘Child Education Insurance’ that offers maturity benefits along with insurance cover.

    Investing in such children saving schemes will provide economic support to meet your child’s education expenses at key milestones in his/her life. Start by creating a specific investment target for higher education expenses, and accordingly invest in such plans to gather a substantial corpus.

  4. Life Insurance for Your Child 
    Sure, it’s not as exciting as the latest Xbox or iPhone but giving your child a life insurance plan can be one of the best gifts. They can actually withdraw money from the policy after certain years and use it for down payment on a house or a car. How’s that for protecting your child and investing in his or her future? Hitting two birds with one stone, right! 

  5. Mutual Funds for Your Child’s Future
    Open a mutual fund account for your child by setting an automatic SIP option. Thus, when he or she is ready to take the plunge (buy a home, start a business), the down payment amount is readily available. It could even turn out to be a much larger corpus, depending on how much you invest. 

  6. Books on Money Management
    If your child loves to read, books on money management are great gift ideas. Some titles worth gifting are:

  • Rich Dad, Poor Dad
  • The Science of Getting Rich
  • Your Money or Your Life
  • The White Shoes

The Ending Note:

These are six financial gift ideas for kids. Some of these gifts may be better for teens instead of younger kids. If you’re looking to purchase something that can help your child in the long run, one of these gifts maybe it.