When giving your child or grandchild a holiday gift year after year, it can be difficult to think of a present that they might enjoy. Each year, they play with the toys, and each year they discard them the next week, day, or hour. Perhaps it’s time to give a gift that will last, the lesson of fiscal responsibility. There are a variety of accounts you can set up for the young person in your life to begin teaching them the important lesson of saving money. Of course, you will also be Santa Claus and the Tooth Fairy all wrapped up in one when you hand them a card with $$$ written at the bottom.
No matter how much it is, they’ll think they’re rich. Once they’ve had fun parading their fortune around the holiday feast, you can spend time teaching them about how to save and grow their nest egg. Soon every birthday dollar and lost-tooth-quarter will be headed to join the rest of their savings.
What Kind of Account is Right for You?
A joint savings account is a good option if you want to be able to have easy access to what your child is doing in their account. You’ll both be named, so as they get older, they’ll be able to do things independently. In the meantime, you can assist with deposits and account management.
A certificate of deposit would be a good option to really help teach the element of patience when it comes to savings. The rate of return is greater for a CD, but the money is untouchable for a set amount of time 30 days, 6 months, 1 year, etc. This gift will allow the young person in your life to see the benefit of patience, as over time, their gift is actually growing.
If your gift is larger and the stipulations are more complex, a trust would be a better fit. A trust is also an excellent teaching tool, and one of the main ways of creating financial stability through generational wealth.
In the end, no one would be offended by receiving cash for the holidays, however rather than just giving a few bills folded in a card, give a gift that shows you care. Setting up their savings shows you care not just for them but also for their future. Contact the Personal Banking experts at Evolve Bank & Trust to get started today!