Author Topic: Best Financial Literacy Gift for an Infant?  (Read 2864 times)

tomatops

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Best Financial Literacy Gift for an Infant?
« on: November 23, 2016, 02:35:09 PM »
It's getting close to holiday season. I'm a new uncle with two lovely young nephews now.

For Christmas, I'd like to give them a little savings gift, but the concept of giving a Savings Bond these days is appalling.

Wonder if anyone has any thoughts on what makes a good financial literacy gift for a kid who literally will not care now, but will appreciate in due time. Thoughts?

KelStache

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Re: Best Financial Literacy Gift for an Infant?
« Reply #1 on: November 23, 2016, 02:57:12 PM »
A few ideas that aren't totally within mustachian concepts, but keeping in mind it's a gift for a kid:

-Gold or Silver coin (likely to appreciate in value - even just with inflation, and neat to collect / look at)

-A few shares in a "cool" company - maybe Disney or something? Not sure if you could get a share certificate to give them?

-Start an RESP in their name and contribute to it for birthdays / Christmas going forward.

Good luck!


tonysemail

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Re: Best Financial Literacy Gift for an Infant?
« Reply #2 on: November 23, 2016, 02:59:19 PM »
speaking as a parent, a contribution to my kid's 529 is great!

MBot

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Re: Best Financial Literacy Gift for an Infant?
« Reply #3 on: November 23, 2016, 09:56:42 PM »
If the parents are cool with it, this is a fun gift to help them learn how to split up their allowances later on.

http://www.msgen.com/assembled/money_savvy_pig.html

Metric Mouse

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Re: Best Financial Literacy Gift for an Infant?
« Reply #4 on: November 24, 2016, 07:46:16 AM »
If the parents are cool with it, this is a fun gift to help them learn how to split up their allowances later on.

http://www.msgen.com/assembled/money_savvy_pig.html

Well that's cool.

But what's wrong with a savings bond? I mean, they're not super duper skyrocket to wealth, but they're far better than lots of other gift options.

MBot

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Re: Best Financial Literacy Gift for an Infant?
« Reply #5 on: November 24, 2016, 08:55:05 AM »
If the parents are cool with it, this is a fun gift to help them learn how to split up their allowances later on.

http://www.msgen.com/assembled/money_savvy_pig.html

Well that's cool.

But what's wrong with a savings bond? I mean, they're not super duper skyrocket to wealth, but they're far better than lots of other gift options.

I agree it's better than many other gifts. The OP asked about financial literacy specifically so I attempted to post an item directly related to developing financial literacy and skills. Also, I got my son's Money Savvy Pig on eBay for $6. AKA future birthday present.

Instead of a bond, a contribution  to their education fund has a better return over time. It might be a little more to figure out, but that compound interest (and in Canada the government match! ) is significant.

Metric Mouse

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Re: Best Financial Literacy Gift for an Infant?
« Reply #6 on: November 24, 2016, 09:32:56 AM »
I agree it's better than many other gifts. The OP asked about financial literacy specifically so I attempted to post an item directly related to developing financial literacy and skills. Also, I got my son's Money Savvy Pig on eBay for $6. AKA future birthday present.

Instead of a bond, a contribution  to their education fund has a better return over time. It might be a little more to figure out, but that compound interest (and in Canada the government match! ) is significant.

Good points. And checking the balance together periodically would be a fun way to reinforce the lessons of savings and compound interest.

(And I did mean the organized saving bank was cool - it fell a little flat on second reading, but was sincere.)

tomatops

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Re: Best Financial Literacy Gift for an Infant?
« Reply #7 on: November 24, 2016, 10:18:26 AM »
If the parents are cool with it, this is a fun gift to help them learn how to split up their allowances later on.

http://www.msgen.com/assembled/money_savvy_pig.html

Love this idea. Will probably get this for the older of the two nephews!

MBot

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Re: Best Financial Literacy Gift for an Infant?
« Reply #8 on: November 25, 2016, 11:44:41 AM »
If the parents are cool with it, this is a fun gift to help them learn how to split up their allowances later on.

http://www.msgen.com/assembled/money_savvy_pig.html

Love this idea. Will probably get this for the older of the two nephews!

Glad it was helpful! They can sometimes be found cheaper on eBay also :)

Linea_Norway

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Re: Best Financial Literacy Gift for an Infant?
« Reply #9 on: November 25, 2016, 11:59:56 AM »
Or just shares in an index fund and an app on the phone that shows how money makes more money by itself.

Del Griffith

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Re: Best Financial Literacy Gift for an Infant?
« Reply #10 on: November 25, 2016, 12:11:11 PM »
My DH and I had the same idea for our two nephews, and just mailed the paperwork for a third account for another brand new nephew. We opened a custodial brokerage account at Schwab for both of the boys. We are the named custodians on the account. Funds can be withdrawn at any time (by us) but they must be used for the benefit of the child. At age 18, full ownership of the account transfers to the child and they can do whatever they want with it. We figure they'll appreciate it much more later when they have a pile of cash from us rather than another toy now when they are babies/toddlers. Plus, they have every toy under the sun, so less clutter for the parents to have to deal with. Other family members have asked how to get in on it to boot.