Anyone that shares their life with children wants those children to be happy. Whether the children in question are your own children, your grandchildren or godchildren, or a nieces or nephews, you probably spend hours searching for the perfect gift so you can watch that child’s face light up when he or she opens it. While some of the gifts listed below may not seem very exciting to young children, the kids will thank you someday for your thoughtfulness. If it makes you feel better, include a toy or trinket along with one of these gifts:
SHARES OF STOCK
Providing a child with a few shares of quality stock each birthday and Christmas will start her on her way to building a respectable portfolio. As the child grows, teach her about stocks and investing, so she will begin to understand and appreciate the value of your gift.
If you are not exactly an astute investor, seek advice on long-term stocks before purchasing. Rather than giving the child a collection of odd shares, try to continue purchasing shares of one or two solid stocks that you believe will increase, or at least maintain, their value over time.
SAVINGS BONDS
United States savings bonds provide an exceptional return on your investment. These bonds double their value in ten years. In other words, you only have to pay $50.00 for a bond that will be worth $100.00 by the time the child is ready to redeem it. To help a child realize how valuable this gift is, help him figure out how much money he could accumulate by a given year.
It is a good idea to reinvest these bonds as they mature. After ten years, they do not gain any further interest. Redeem mature bonds, or have the child’s parent redeem them, and invest the proceeds in new bonds.
SAVINGS ACCOUNTS
Start a savings account for a child in your life. Encourage him to add to the account as frequently as possible. Make sure he understands that he earns interest on every dollar that goes into -and remains- in his account.
Each time the child makes a deposit, promise to match it, or to add a certain amount to it. You may want to make it a round number, say $20.00, since it could become difficult to keep your promise once the child is older and begins to earn his own money.
Note: you will need to add your name or the name of one of the child’s parents to any of the above items, as long as the child is a minor.
PIGGY BANKS
Another neat idea is to give a child a piggy bank when she is very young. Encourage her to put money in her bank, and give her a certain amount of money for each birthday. Teach her to put at least half of that money, and any other birthday money, in her bank.
Of course, it does not necessarily have to be a piggy bank; there are many varieties and styles of banks available these days, such as images of favorite cartoon characters and action figures. There are plain banks, fancy banks, and even battery operated banks that make putting money away fun.
When the bank is full, use the money to open a savings account or to purchase savings bonds. Once the bank is empty, give the child a dollar or a handful of change, so she can start filling it up again.
