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This year you’re determined to give your grandchildren a monetary gift for the holidays — rather than the latest trendy trinket. Fortunately, you have quite a few choices, some of which have tax advantages. At the same time, they’re kids, and a savings bond doesn’t have quite the cachet as a PlayStation. You don’t want to disappoint them.
Back in the day, if your grandparents gave you cash in a new bank account, a savings bond or shares of stock, you didn’t know how lucky you were. It wasn’t the shiny bike or ballet slippers you had hoped for. But eventually, you realized that it was a valuable first step toward financial literacy and a solid future.
Pique their interest, give your time
How can you sweeten the deal, and make your gift — and learning about money — enjoyable? How about including a board game? Hasbro now offers at least 16 different versions of Monopoly for various ages, including its Super Electronic Banking Game for kids 8 and older. For younger children, there’s Learning Continuum’s Loose Change, as well as Lakeshore Learning’s Making Cents Money Game and its Allowance Game.
Enjoy that game with your grandkids; they will remember it. “The gift of your time is priceless, says Bradley Lineberger a certified financial planner (CFP) at Seaside Wealth Management in Carlsbad, California. “There is much wisdom that can be imparted to the next generation, and spending time with your grandchildren will pay dividends in the future.”
For older kids, age-appropriate books, publications or documentary films may get their attention. Lineberger likes The Richest Man in Babylon, by George Clason, and The Wealthy Barber, by David Chilton. “The latter, written in 1926, is a timeless classic, but both are amazing,” Lineberger says.
For teens or college students, George Gagliardi, a CFP at Coromandel Wealth Management in Lexington, Massachusetts, suggests a subscription to the Kiplinger or Money newsletters or magazines. In addition to his suggestions, the documentary The Most Important Class You Never Had features eight personal finance educators who talk to high school students …….