Money Smart Kids
Holiday Gifts for Kids
It's not the gifts but the memories that matter most to kids.
By Janet Bodnar, Editor, Kiplinger's Personal Finance
November 27, 2003
While sorting through a stack of press releases, I came across a survey in which kids ages 8 to 12 were asked to rate a list of holiday gifts. A "big-screen TV for your room" topped the charts. But the kids also volunteered that many of their favorite holiday memories don't involve gifts at all. Instead, they recall family events, such as "when the whole family was at Grandma's house" or "the time Mom set the turkey on fire."
Keep that happy thought in mind, and you'll keep your head instead of getting caught up in a holiday shopping frenzy. Also keep in mind these answers to questions I'm frequently asked by parents and grandparents:
How can we get our kids to give to people who really need it?
Have them do something hands on, such as donating a gift through a local toy drive or participating in a church- or school-affiliated charitable project. Or encourage them to use their own money to buy a gift through an organization such as Heifer International, which provides livestock to needy families worldwide. The more tangible the gift, the easier it is for them to appreciate.
Can we buy our grandchildren a single share of stock in a company they'd be interested in?
If you have a brokerage account, your broker may be willing to cut a deal on transferring shares. If not, the least expensive route is probably through ShareBuilder.com, which lets you buy one share of stock for a fee of $4 per investment.
As our grandchildren get older, it's tough to know what they'll like. Is it too crass to give them money?
Kids old enough to buy their own clothes and CDs welcome money. If it's feasible, give them cash instead of a check; it's easier for kids to spend hard currency. Gift cards from music or clothing stores are an alternative, but make sure the kids won't be charged a penalty if they don't use them right away.
Or, take the kids shopping and let each of them spend an amount agreed upon in advance.
How many gifts should a child get?
You know you've bought too much stuff if you can't remember what you hid where -- or if the kids get bored and walk away while opening their gifts.