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

don't charge a pennyoverspend on giftsfinancial argumentscar loanForbesdon't use allowance as bribeuniversal college accessrequire chore in exchange for allowancePrime Rate Rise 2015graduationInterestbuy homesuccesslearn good financial choicesbuying car 2016better termspaid vacationconsider roth 401(k)dental savings planPay Off Debt Before Retirementbuy home you can affordresponsible with moneyStudent Debtsmall changes 2016 adjust withholdingFederal Funds Rateinsurance mistakehigher insurance deductiblemoney-aware childbest loan deal alternative FICO scoreraise insurance deductiblecreate new truthbig results breakdown projected monthly housing costinsuranceescrowhome loan credit score below 740 Warner Bros Television Groupincrease retirement savingsnegotiate points with bank or sellerhigh deductible health care planplanborrowing plan mobile appUS Tax Codehome insurancerent vs buyretirement accountsrefinancesecured cardterm life insurancepurely financial standpointdebit cardlong-term care premiumsreal estate marketdon't do five year car loanprescription tierNewtownMoney MarketteensRetirement Incomeadjust allocations don't ignore open enrollmenthome buying budget10% donate to charityis it necessaryPost-Divorcebecome member short term goal is it kind?age appropriate chorereduce monthly paymentwould you decline a bonushealthy retirement weightno interestFinancial Systemkeep a scheduleemergency fund Bankruptcyautomatic paymentAmericans don't use all paid vacation timeignore 6 month grace period Financial Power of Attorneyfraudulent returnSuze Orman's Money Wars8 Rulestitle insurance15-year refinance dealrising home pricesspeak new goalThe Suze Orman Showpay down student loan debtcompare monthly expensesmortgage20% equitymonthly dental insurance premiumprotect loved ones FRAloan is giftpay interest while in schoolBankpowerfulstretch out haircut appointmentsgift up to 14,000social workdebtget health insuranceco-sign no life insurance financially irresponsibleStudent Loanholiday spendingcomparison shoppingFinancial Solutions For Youlowest cost fund option20% down payment avoid feesstudent loan debtdon't extend mortgage Holiday SeasonRichopen enrollment review marriage financial responsibilitydental insurance Forbes Top 10financing car women outlive menpush yourself to save more for retirementtax ID theftlive below your meansdangerous retirement planproperty taxdo you need life insuranceearn allowance2015 financial roadmapno late fee depreciating asset Final GoodbyeHow To Build Creditbad decisionsTeachone credit cardis it necessary?HDHP'sWashingtonFinancialVeterinary Schooldon't buy wantsgrandchild summer job IRA contributionitemized deductiondon't derail retirement savingstake actionMass MutualPersonal FinanceStock Investmentshigh premiumsIRA contribution gifted moneyCPI-Wtelevision hostpercentage men widowed 75-84allowanceSuze is my biggest mentorFinancial Awarenessroth iraBeautysocial security never insolventOverspendinganticipated salaryPBS Specialage appropriate goalsultimate compounding giftMost Influential Celebrities Listfour steps to retirement savings tax refund fraudincrease emergency savings401(k) Contributionsnew cardon't blow tax refundhousing marketCNBCfederal student loan deferment bad retirement planning401KEmployer Matched ContributionGiftsallowance tasktraditional vs roth 401(k)unexpected expensebetter loan dealsstudentkid borrow firstSuze Orman spouse Kathy Travispresident Obamapaying for collegeAdequate Auto and Home Insurancecar leasingcharges on credit cardHDHP's are good for youhighest possible benefitpositiveFinancial Educatormortgage brokerback door Roth IRAretirementprotect your familyAuto Savings maintain standard of livingAshley Springermanage student loanspercentage of women widowed 75-84replace permanent life insurance with termpay high rate off firstmax employer matched 401(k) contributionrefundrolloverHDHP's are not bad40% toward financial goallet them have 50% control3 step financial road mapunder 18 financial giftbuy down make saving a pleasureshop online guaranteed level term policyInfluentialsretain separate credit cardsForeclosureswitch to spouse coverageJose Rodriguezcostly insurance mistakebalance transfer quick closing4 Must Have Documents dental discount planno waiting periodHoliday Shoppingdoctor no longer in networkswitch to roth 401(k)death benefit 20 to 25 times annual incomeFree Debt Eliminatororigination feescost of capitalization calculatorStaffords this year have a fixed 6.8% interest ratechildren under 18LTCi ASAPwrite new goalstudent loan repaymentonly refinance if it payslong term goalwomen longer life spanFiscal Responsibilityfocus on needsGay CouplesSpendingfull retirement ageSandy Hook PromiseSandy Hook Elementary Schoolpay more than minimumfinancial concernAmy Lacyetlong-term care derailed planteach importance of helping othersFinancial Gift Clifflower premiumdoctors in networksave moneypoint cost offset by savingspaid in fullLong Term Care shoppingterm insurancepublic service career student loan repayment identity theftstandard ratecredit reportkids schedule paymentsbest interest ratesnear historic lowsGiftbe kind to yourselfStudent Debt Crisisno retirement funds for down paymentinsurance yearly reviewreduce withholdingpermanent life insurancecommitsocial security not going brokeUniversity of Floridaface your financial fearidentity frauddear suzeat worst still pay 75% benefitConventional loan PMIunsubsidized Stafford loanAccuQuote.commeet monthly automate student loan paymentsoverspend on nights outSuze Orman Scholarshiphealthy retirement blood pressureExhibition3 savings buckets long term careletter to suzeFinancial Cliffsavings pleasurehome budget after tax costclosing feesEmergency Savingsreduce interest rateconfidentno fee transferprotect and provide for minor child confident of solutionAlarm Clockreferrals credit cardalways use all paid time offlower overall drug costdon't defer interest payments19 years cash flow problemcouple financesjanuary billsNew York Life2017 Taxesgay marriage ban end Florida dream schoolCollege of Veterinary Medicinepay credit debt ASAPpay 100% cashincentives for health care wellness screeninglower rate8 month emergency fundemotional stakesAARPwomen live longerLong Term Care premiumsloan necessity3% debt transferred bill paying prioritiesrepay student loansget over life insurance phobialousy investmentinterest on student loanswives should be involved in retirementnot gender specific Prime Rate Increasecalculate dependents annual income needsWall StreetFinancial Awareness Video FestivalLovecar buying mistakeslower mortgage interestget the most out of social security closing costs 2% of loanAARP Social security calculatormortgage disclosureprovider of financial supportFinancial Adviceone annual feeteach your child good money habitsstay positivesetup automatic savings withdrawvalue moneyMoneysecure creditfocus on new truth University of Illinoisfinancial fears50 over 50gift not loan6 month waiting periodsidelinedpublic service loan forgiveness programlife insurance name trust as beneficiarySelectQuote.comstudent loan repayment planFICO at least 720don't spend summer job match income automatic withdraw to savings store credit cardscnbc alarm clockno tax on withdrawlsRoth 401(k)20 year level term contribution Retirement Savingsgift grandchild IRA contributionCredit Card Interest RateGraceget credit cardHSA tax savingsHeartmonthly benefit verify retirement plan with HR or plan sponsorverify wellness screening and programsbuying a carlow-cost index mutual fundhigh FICO scoreLTCcontribute household expenses FICO credit score credit card mortgageSuze changed my lifepay off debtMortgage Credit Availability IndexDurable Power of Attorney for Health Careapproved medical 100% tax-freegrandparent IRA contribution increase retirement contribution ratenot enough life insuranceraise deductiblesGay RightsCommunication Skills college graduateonly offered while employed FICO Scorecut monthly cellular billfile asapCiti Simplicity Card annual cost of living adjustmentcredit unionMoney-Savinghome ownershipMarlo Thomashealthy aging 3 bucket approachCOLABaby Boomersinitial tax break 2016 adjust estimated taxhome related tax break bonus overspend on dining outOne Wallet At A Timeemergency fund savingsdo not pay allowance for good behaviorhome buying mistakesovercome financial fearssame sex marriage band end Floridamoney vowsworst financial mistaketaxesSatisfyingsavings20% down paymentSave Us Moneymortgage interest tax deductionrequired disclosurecollege studentdon't cover cosmetic dentistryschool Suze approvedLTC shoppinglife insuranceno splurge multiple lendersretirement plancommunity collegelow down paymentlow credit scoreCivil Rightsphysical healthjuggle multiple financial goalszero rate transfer dealsthree year car loanteens and moneywomen long term careCory Bookerdebt freebudgetno private loancommunity bankTelepicturesInvest for savings growthFundspay down car loanloved ones dependent on incomeYoung Adult mental healthresponsibleno negativityRevocable Living Trustritual scheduleback-to-school budgetadd teenfamily save at least $100 monthlysave same-sex marriagefinancial goal phraseprotect dependent special saving accountborrow each year, capitalization is going to pile up social securityEric Dodge employer funding HSAcan you afford itretirment savingsloan no longer than 36monthsmax employee matchHDHP/HSAPhyllis Shelton expert long-term carepreexisting condition not coveredno sneaking in feesexercise reguarlycredit managementInfluential CelebrityCommencementdeath benefit needs for familyfinancial independenceNew american Dream marriage inequalityLong Term Care Insurance interest capitalizationfile taxes quicklyavoid burn outSuze OrmanBill and PennyChanging Livesmax benefit coveredheartache8 month safety netbe true to yourselfreal estate mistakesadvice for college graduatesclosing disclosurebetter loan ratesloan big picture Lifestylepremiumbe good example2015 record year car salesstudent loan repayment estimatoradult childrenEasy Life Insurance Holidayemployer offered life insuranceMotherchildren's bookwaive home inspection bidiffy incomeFHA loan feesCredit scoreCredit Card Rate Increase!00% tuition paidleave a legacyvalentines day10 year repayment plan know before you oweenjoy saving cut monthly cable billETF'sdangerous money seasonstandard deduction is it true? School of Social WorkGoodbyeHDHP Urbana-Champaignyours, mine & ours

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