Suze Orman TwitterSuze Orman FacebookSuze Orman YouTubeSuze Orman LinkedIn
View Blog & News List

Give Your Kids the Gift of Giving

December 08, 2016 at 5:00 AM

The run up to the holidays at the end of the month is an especially great time to teach young children some money and life lessons.

Have The Kids Clean Their Closets, Rooms, and Playrooms. The goal is to create a single pile of all the toys, books and clothes that are no longer used or wanted. As a family take a look at the pile and separate the stuff that was used a lot-but has outgrown its usefulness-from stuff that was rarely used. Right there you’ve got a great lesson waiting to be taught. 

I want you to pull out one item of clothing from the used-but-outgrown pile and one from the never-or-rarely-worn pile that was something your child begged you to buy. If you have the cash handy, I want you to put the dollars you spent to purchase that item on top of the item. Or write down on a post-it the cost of each item. Then talk about whether you, and they think you got your money’s worth out of the item. Explain what you mean by that: was the cost worth it given how often (or not) the item was used, or appreciated. I think you will all agree that the money spent on the used item was worth it. But now focus on the unused item. I want you to ask your child what they would choose today: the item or the money it cost. They will likely want the money. Don’t give it to them! But use this as a lesson that you all can lean on when you’re shopping. Have them really think through if a purchase is worth it.  

  1. Find a Good Home For All Your Unwanted Stuff. Your pile of things to toss can be someone else’s treasure. Please use this as opportunity to teach your kids about charity. Discuss some local groups that might be interested in what you and the kids have decided to get rid of. Then make it a point to have your child accompany you to make that donation.

  2. Create a Holiday Money-Gift Plan. If your children receive money as gifts this holiday season, or for birthdays and other milestones, don’t miss an incredible learning opportunity. I want you to sit down as a family and talk about how money can be used: It can be spent. It can be shared. It can be saved. My recommendation is that every time a child receives a monetary gift you divide it into these three buckets: Spending, Charity, Saving. It is up to you to decide how much goes in each bucket. I would obviously encourage more go toward charity and saving. But spending is also important. Whether it is 10% or 25%, this is money you give your child free rein to spend, as they want. No judgment. There is learning to be had in making decisions about how to spend. My hope is that they will focus on things they truly value. If not, that’s a purchase that will end up in next year’s Unused Stuff Pile…and the teaching and learning can continue.

Tag Cloud

HDHP's are good for youhigh deductible health care planpresident Obamamortgagelousy investmentteensStudent Loan3% debt transferred pay high rate off first3 savings buckets Most Influential Celebrities Listbuying a cargrandchild summer job IRA contributionprovider of financial supportterm life insuranceCredit Card Rate Increaseno apologychildren under 184 Must Have Documents better loan ratesForeclosureUrbana-Champaignhigh premiumsno private loansFinancial Gift Cliffautomate student loan paymentsMass MutualSuze changed my lifereduce withholdingresponsible with moneyretain separate credit cardspay interest while in schoolAuto Savings Ashley Springerhousing marketCOLAcar leasingtake action8 Rulesreplace permanent life insurance with termstretch out haircut appointmentsteach importance of helping othersFederal Stafford loanpush yourself to save more for retirementdeath benefit 20 to 25 times annual incomeallowancebest interest ratesshop online guaranteed level term policySuze Orman spouse Kathy TravisrefinanceRevocable Living Trustgrandparent IRA contribution ignore 6 month grace period Eric Dodge can you afford itFundsMoneyincrease emergency savingsWillhigh down paymentmarriage inequalitymortgage disclosurePhyllis Shelton expert long-term careclosing costs 2% of loanstay positivePrime Rate Rise 2015peace of mind15 year mortgageswitch to roth 401(k)Credit Card Interest Rateearn allowancechildren's bookBill and Pennydebit card50 over 50new carreduce monthly paymentroth iraFinancial Power of Attorneylower mortgage interestInfluential Celebrityshort term goal Staffords this year have a fixed 6.8% interest rateFinancial Systemfinancing car AARP Social security calculatorconfidentquick closingplanlowest cost fund optionLong Term Care shoppingMarlo Thomasmortgage interest tax deductionSave Us Moneyloan necessitysavings pleasureFederal PLUS loan!00% tuition paidcut monthly cable bill40% toward financial goallow down paymentpoint cost offset by savingsemployer offered life insurancedo you need life insuranceknow before you oweCNBCJose Rodrigueznon conventional routeincreased auto insurance premiumworst financial mistakejanuary bills20% down payment avoid fees2016 adjust withholdingunexpected expenseLoveincrease retirement contribution rateverify wellness screening and programsidentity thefttitle insurancecommitoverspend on dining outstandard deduction Young Adult community collegebe kind to yourselfForbes Top 10cost of capitalization calculatorhome loan credit score below 740 budgetfour steps to retirement savings Suze approvedopen enrollment review overspend on nights outorigination feesHigh FICO Score = Better Rateno waiting periodloan no longer than 36monthsdon't blow tax refundInfluentialslower raterising home pricestaxesGiftpay more than minimumteens and money10 year repayment plan healthy gumssave moneyInflation Benefitbad retirement planningdon't defer interest paymentsunsubsidized Stafford loancreate new truthmax employer matched 401(k) contributionHDHP's are not badwomen live longerFixed Rate MortgageFRALegal Guardian2016 adjust estimated taxSuze Orman's Money Warsis it necessaryHDHP Civil Rightsmaintain standard of livingaccelerate dental workFinancialPrime Rate Increasehigh credit score discount20 year level term identity fraudAdequate Auto and Home Insuranceraising interest ratesCombo Insurance Productspay 100% cashpurely financial standpointfinancial aidinterest capitalizationbill paying prioritieslower overall drug costkeep a schedulebest loan deal only offered while employed file asapPay Off Debt Before Retirementgift grandchild IRA contributionLong Term Care Insurance Warner Bros Television GroupVital Documentsborrow each year, capitalization is going to pile up no private loanVeterinary Schoolreal estate marketdebtno fee transferreferrals dental discount planGiftsreal estate mistakeslow credit scoredon't charge a pennyHolidaypublic service career student loan repayment women longer life spanhealthy teethForbesgay marriage ban end Florida 3 step financial road mapFinancial AdviceSchool of Social Workspecial saving accountARMfull retirement ageheartachealternative FICO scorebetter termsThe Suze Orman Showdream schooltoo expensive schoolexercise reguarlyLTCi ASAPritual scheduleinsurance yearly reviewfederal student loan deferment make saving a pleasureCredit scoreeliminate credit card debtLong Term Care premiumstelevision hostsuccessbe true to yourselfNewtowndon't extend mortgage closing disclosurecar buying mistakesvalentines dayAmericans don't use all paid vacation timeemergency fund savingsdear suzenegotiate points with bank or sellerFiscal Responsibilitybreakdown projected monthly housing costhome budget after tax costcollege studentdo not pay allowance for good behaviorFinancial EducatorHDHP/HSAGoodbyelong term goalmoney-aware child20% down paymentcar loanFICO at least 720insurance mistakeface your financial fearCory Bookerdon't buy wantsapproved medical 100% tax-freefraudulent returnultimate compounding gifthome related tax break bonus live below your meansbuy down home insurance3 bucket approachrefundprotect loved ones low mileage discountyours, mine & oursno sneaking in feespremiumstrained relationshipretirment savingsPost-Divorcehealthy retirement weightfocus on new truth repay student loansfinancial argumentssave juggle multiple financial goalsincrease retirement savingslife insurancebad decisionswaive home inspection bidhome buying budgetcredit unionschedule vacationborrowing plan require chore in exchange for allowancedoctors in networksavingsdental insurance same-sex marriagestudent loan repayment planlong-term care premiumsdepreciating asset kid borrow first8 month safety netautomatic withdraw to savings shorter payback periodiffy incomecomparison shoppinghigher monthly paymentpercentage men widowed 75-84Personal Finance30 year mortgage 401Kearn more on savingshigh FICO scoremax employee matchOverspendingCollege of Veterinary Medicinezero rate transfer dealsaffordabilityRevocable TrustFederal ReserveTelepicturescontribution women long term careFHA loan feestax refund fraudinsuranceenjoy saving money vowsdon't derail retirement savingscommunity bankCommencementFinal Goodbyeat worst still pay 75% benefitUS Tax CodeCD'scontribute household expenses permanent life insurancefocus on needseight month living expense ETF'sSatisfyingstandard ratedeath benefit needs for familyIRA contribution gifted money15-year refinance dealsocial security never insolventdangerous money season8 month emergency fund401(k) Contributionsadjust allocations ARM Cautionprotect and provide for minor child RichFICO Scorestaycationdon't cover cosmetic dentistrytax ID theftExhibitionraise deductiblesCommunication Skills not enough life insurancethree year car loanHSA tax savingsonly refinance if it paysstudentbalance transfer CPI-Wgift not loanadd teenlong-term care pay down student loan debtpaid vacationcostly insurance mistake19 years cash flow problemRetirement Savingsmultiple lendersanticipated salaryinterest on student loansemotional stakesresponsiblefamily save at least $100 monthlyAlarm ClockHoliday Season2017 TaxesStudent DebtHoliday Shoppingfinancial fearsfinancial goal phrasedebt freecostly legal employer funding HSAmanage student loansrolloverRetirement Incomelearn good financial choicesHigh Credit Scoreitemized deductionHow To Build Creditspeak new goalSuze is my biggest mentor2015 record year car salescut monthly cellular billis it true? reduce interest rateconfident of solutionage appropriate choreCiti Simplicity Card overspend on giftsone annual feegraduationcouple financesMoney Marketletter to suzeworkaholicpay credit debt ASAPLifestylefinancial concern20 to 25 times annual incomeBaby BoomersGay Rightsgift up to 14,000retirement planprotect dependent switch to spouse coveragemeet monthly powerfulleave a legacyGraceInvest for savings growthMoney-SavingHeartmax benefit coveredMinor Children is it kind?Financial Solutions For Youpay down car loanstudent loan repayment estimatorhighest possible benefitback door Roth IRAannual cost of living adjustmentConventional loan PMIno splurge term insuranceautomatic paymentmonthly dental insurance premiumFinancial CliffSuze Ormanbecome member calculate dependents annual income needswomen outlive menEmergency Savingscredit cardconsider roth 401(k)school 20% equityaffordable premiumraising mortgage rates retirement accountsdon't use allowance as bribeinitial tax break get health insurancelife insurance name trust as beneficiaryget credit cardstore credit cardshealthy aging not gender specific holiday spendingproperty taxcredit utilization rateget over life insurance phobiasummer job match income Teachstudent loan repaymentdoctor no longer in networkStudent Debt CrisisSpendingwives should be involved in retirementis it necessary?Suze Orman Scholarshipadvice for college graduatespositiveSelectQuote.comEasy Life Insurance lower premiumHDHP'sdon't ignore open enrollmentmobile appbuy homeNew York LifeSelfishhome buying mistakesteach your child good money habitsescrowovercome financial fearsbig results kids schedule payments740 credit scoreraise your deductibleMotherBeautyFederal Funds Rateno tax on withdrawls10% donate to charityunder 18 financial giftprescription tierco-sign higher insurance deductiblePBS Speciallow-cost index mutual fundloved ones dependent on incomeloan big picture student loan debtrequired disclosurecnbc alarm clockFinancial Awareness Video FestivalSandy Hook Promisehome buying seasonspring summer get the most out of social security Mortgage Credit Availability IndexAccuQuote.comNew american Dream compare monthly expensesRoth 401(k)Free Debt Eliminatormental healthhome ownershipno retirement funds for down paymentalways use all paid time offdon't spend don't do five year car loanlower interest rateno negativitybuy home you can affordincentives for health care wellness screeningFinancial Awarenesssidelinedallowance tasksocial security not going brokesecured cardDurable Power of Attorney for Health Carelet them have 50% controlhealthy retirement blood pressurecollege graduatepreexisting condition not covered6 month waiting periodpay off debt2015 financial roadmapAARPderailed plancredit reportno life insurance financially irresponsibleOne Wallet At A Timeemergency fund Sandy Hook Elementary Schoolone credit cardwould you decline a bonussocial workprotect your familytraditional vs roth 401(k)back-to-school budgetAmy LacyetLTClong term carepaying for collegemarriage financial responsibilitynear historic lowssecure creditmonthly benefit University of Illinoisbetter loan dealsburn outloan is giftbuying car 2016social securityMust Have Documentsavoid burn outLTC shoppingInterestSwap Older Annuities or Life Insurance no interestUniversity of Floridano late fee file taxes quicklyraise insurance deductibledental savings planhealthy youChanging LivesGay Couplesage appropriate goalsverify retirement plan with HR or plan sponsorsame sex marriage band end FloridaWall Streetuniversal college accessDeath BenefitEmployer Matched ContributionBankFICO credit score credit card mortgagemortgage brokerfinancial independencecredit managementWashingtonsetup automatic savings withdrawdangerous retirement planpaid in fullbe good examplesmall changes value moneyStock Investmentsretirementpercentage of women widowed 75-84charges on credit cardwrite new goalpublic service loan forgiveness programrent vs buyphysical healthcompare provider pricingBankruptcyadult childrenclosing fees


View Blog & News List
People First. Then Money. Then Things.
Connect with me on Facebook Connect with me on YouTube Connect with me on Twitter
© 2017 Suze Orman Media Inc. All rights reserved.
 
 |  Search  |  Sitemap  |  Privacy  |  Terms
Sign Up For E-mail Offers
Open Panel
Close Panel