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

Money Gifts to Kids: 3 Rules Every Parent Must Follow

November 12, 2015 at 12:00 AM

As we are heading into the holiday season, I know plenty of kids will be receiving a check from a grandparent, aunt or uncle. So I want to review how every family with kids under 18 should handle financial gifts year round.

Rule 1: Let your kid have total control of 50% of the money. And I do mean total control. Do not suggest how it can be spent (or saved). Do not judge the choices your child makes. Let your child learn through personal experience. What they learn today will impact financial choices they make in the future.

Rule 2: Have your child save 40% of the money. You want to tie this to specific goals. I personally think every child should be saving as much money as possible for college, even if it is 10 years away. This is a natural way to start talking in an age appropriate way about the cost of an education, and how as a family you plan to tackle it. Or if you anticipate your child will want a car, have them start saving up now.

Rule 3: Give your child the gift of giving. At least 10% of the money should be donated to charities. This is a fantastic opportunity to talk as a family about the importance of helping others, whether they are in our neighborhood or halfway around the globe. If there is a local charity your child wants to donate to, I would highly recommend an in-person visit to drop off the contribution.

The percentages for each Rule above are my recommendations; you are of course encouraged to alter as you-and your family-deem appropriate.

Tag Cloud

best interest ratespositivereduce interest ratedream schoolloan big picture term insuranceEasy Life Insurance Sandy Hook Elementary Schoolbest loan deal file asapsuccessprotect your familyFinancialPersonal Finance20% down payment avoid feessavings pleasureverify retirement plan with HR or plan sponsorStudent Debt CrisisGiftsFinancial Awareness Video Festivalhousing marketonly offered while employed let them have 50% controldon't do five year car loanlive below your meansbuying a carreal estate marketPost-DivorceCOLAcontribution comparison shoppingmortgagepaid vacationtaxesStudent DebtHolidayEmergency Savingsnegotiate points with bank or sellercredit unionsavingsschool LTC shoppingconfident of solutionbe kind to yourselfzero rate transfer dealslousy investmentadjust allocations don't blow tax refundaffordabilityalternative FICO scorereal estate mistakesunexpected expenseForbes Top 10Communication Skills non conventional routeraising mortgage rates doctors in networkinsurance mistakeloan is giftreferrals retirementdo you need life insuranceExhibitionterm life insurance2015 financial roadmapno sneaking in feesRoth 401(k)incentives for health care wellness screeninghome ownership!00% tuition paidfinancial independencegift grandchild IRA contributionhome insurancebecome member contribute household expenses refinancecut monthly cable bill3 step financial road mapmonthly dental insurance premiumno fee transferplan2016 adjust estimated taxlower rateholiday spendingFICO Scoresocial workis it necessary?high deductible health care plancostly insurance mistakehealthy youOne Wallet At A TimeRichfull retirement agePrime Rate Increasehigh down paymentlow credit scoreno life insurance financially irresponsiblespecial saving accountMarlo Thomasrequired disclosureno private loanpay off debtRevocable Living TrustFederal ReserveInvest for savings growthemployer funding HSAlower interest rateMortgage Credit Availability IndexFICO at least 720balance transfer long term goalquick closingHow To Build Creditcostly legal switch to roth 401(k)HDHP bad retirement planningpay down car loan19 years cash flow problemprescription tierhome buying seasonbetter loan deals30 year mortgage Financial Clifflong-term care premiumssecure creditlong-term care earn allowanceno tax on withdrawlsSuze Orman401Kitemized deductionpaying for collegebuying car 2016escrowhome related tax break bonus protect loved ones write new goalSpending8 month safety netteach importance of helping others2016 adjust withholdingcreate new truthmarriage financial responsibilitytake actionARMSelfishdangerous money seasonsocial security never insolventmortgage disclosuredon't cover cosmetic dentistrypay 100% cashhome budget after tax costinterest on student loansJose Rodriguezis it kind?20% equitymoney vowsmeet monthly Long Term Care shoppingcompare monthly expensesbreakdown projected monthly housing costInterestpoint cost offset by savingsuniversal college accessFinal Goodbyehealthy aging InfluentialsMotherverify wellness screening and programsresponsibleno private loansUrbana-Champaignwomen live longerfiduciarycommitAuto Savings healthy teethLTCfraudulent returnLegal Guardiandon't derail retirement savingsschedule vacationeight month living expense strained relationshipfinancial fearsbe good examplekeep a scheduleidentity theftcompare provider pricinginsurancedoctor no longer in networkARM Cautionpay down student loan debtMust Have Documentsrent vs buywomen long term care2015 record year car salesiffy incomecredit cardWill15-year refinance dealFederal PLUS loanCivil Rightshealthy gumsHDHP's are not badpeace of mindLong Term Care Insurance women outlive menRetirement SavingsMoney-SavingRetirement Incomesame-sex marriagepublic service loan forgiveness programtax refund fraudPBS Specialkid borrow firstPay Off Debt Before Retirementoverspend on nights outNew York LifeCD'sstudent loan repaymentsidelinedcar loanautomatic paymentteach your child good money habitstoo expensive schoollow down paymentdebthealthy retirement weightignore 6 month grace period television hostget the most out of social security death benefit 20 to 25 times annual incomenew carjuggle multiple financial goalsdebt freeForeclosurereduce monthly paymentphysical healthLifestylebig results pay more than minimumbad decisionsannual cost of living adjustmentno negativityprotect and provide for minor child buy home3 savings buckets cnbc alarm clockAccuQuote.comVital Documentscan you afford itIRA contribution gifted moneyreplace permanent life insurance with termtax ID theftWashingtonFinancial Power of Attorneyretirment savingsspeak new goaldear suzeno retirement funds for down paymentSuze Orman spouse Kathy TravisHigh FICO Score = Better Ratebest interest of investorcut monthly cellular billlower overall drug costmarriage inequalitydebit cardSuze Orman's Money Warsultimate compounding giftAARPthree year car loanSchool of Social Workretain separate credit cardswould you decline a bonusdon't defer interest paymentssuitableemergency fund savings4 Must Have Documents require chore in exchange for allowanceFinancial Awarenesswomen longer life spandental insurance push yourself to save more for retirementHDHP/HSAleave a legacySuze changed my lifehome buying mistakesis it true? US Tax CodeUniversity of Floridasummer job match income cost of capitalization calculatoremployer offered life insurancevalue moneyworst financial mistakelower premiumfederal student loan deferment professional advisorcar leasingdepreciating asset low mileage discountteensincrease emergency savingsclosing costs 2% of loanraise insurance deductibledon't buy wantsmobile appHigh Credit ScoreSwap Older Annuities or Life Insurance AARP Social security calculatorInflation Benefitborrow each year, capitalization is going to pile up maintain standard of livingno interest20 to 25 times annual incomeshop online guaranteed level term policyraise deductiblessmall changes Sandy Hook Promisemental healthsocial security not going brokeSave Us Moneyemergency fund staycationorigination feesderailed planpresident Obamanot enough life insuranceMass Mutualno late fee Bankruptcy10 year repayment plan purely financial standpointdon't charge a pennyfile taxes quickly15 year mortgagemake saving a pleasureTeachmax employer matched 401(k) contributionBeautystay positivemax benefit coveredThe Suze Orman Showidentity fraudmortgage brokerreduce withholdingshorter payback periodtitle insuranceconsider roth 401(k)borrowing plan financial concernrolloverCredit Card Interest Ratelowest cost fund optionface your financial fearInfluential Celebrityage appropriate goalsfamily save at least $100 monthlygraduationcollege graduateroth iratraditional vs roth 401(k)Bankretirement accountsCredit Card Rate Increaseheartacheproperty tax2017 TaxesFinancial Systemcalculate dependents annual income needsPrime Rate Rise 2015standard deduction Stock Investmentsone credit cardWarner Bros Television GroupworkaholicSelectQuote.comback door Roth IRAgrandparent IRA contribution same sex marriage band end Florida740 credit scorejanuary billsdangerous retirement plan20% down paymentFinancial Solutions For YouGiftSuze Orman Scholarshipmultiple lendersenjoy saving gift up to 14,000ritual schedulebudgetcouple financesCredit scoreoverspend on dining outhigh premiums6 month waiting periodnot gender specific Forbes8 month emergency fundLovedon't extend mortgage yours, mine & oursGraceEric Dodge letter to suzefinancial aidpaid in fullYoung Adult Americans don't use all paid vacation timeOverspendingbetter termsbuy home you can affordoverspend on giftsbe true to yourselfMoney Marketmortgage interest tax deductionCommencementLong Term Care premiumsget over life insurance phobiaMoneyburn outfinancing car Most Influential Celebrities ListCollege of Veterinary MedicineDeath BenefitFundsUniversity of Illinoisteens and moneyget health insuranceDurable Power of Attorney for Health Careno splurge only refinance if it paysstudentanticipated salaryunsubsidized Stafford loanclosing disclosuresocial securityno waiting periodPhyllis Shelton expert long-term carecredit utilization rateloan necessityStudent Loanswitch to spouse coverage50 over 50Holiday Seasonsave don't ignore open enrollmentgift not loanlower mortgage interestemotional stakesadd teenno apologylife insurancelearn good financial choiceseliminate credit card debtstandard rateNewtownconfidentstretch out haircut appointmentsfour steps to retirement savings life insurance name trust as beneficiaryfinancial argumentspublic service career student loan repayment Wall StreetEmployer Matched Contributionfocus on new truth financial goal phrasemonthly benefit Combo Insurance Products20 year level term buy down 3% debt transferred advice for college graduates401(k) Contributionsprovider of financial supportCiti Simplicity Card increase retirement contribution ratekids schedule payments10% donate to charityis it necessarystudent loan repayment planChanging Livesloved ones dependent on incomeAmy Lacyetcredit reportcollege studentpay interest while in schoolHeartdental discount planFixed Rate MortgageNew american Dream HSA tax savingsBaby BoomersAshley Springerearn more on savingshigh FICO scoredon't spend raising interest ratesmanage student loanscommunity collegeautomatic withdraw to savings gay marriage ban end Florida waive home inspection bidallowance taskstudent loan repayment estimatorCNBCaffordable premiumco-sign at worst still pay 75% benefitsecured card3 bucket approachcommunity bankengaged in financesincrease retirement savingscredit managementHDHP's are good for youFederal Funds RateTelepicturesshort term goal GoodbyeSuze is my biggest mentorlong term careovercome financial fearsCory Bookeradult childrendental savings planmoney-aware childFinancial Educatorback-to-school budgetFinancial Adviceget credit cardpercentage men widowed 75-84raise your deductibleapproved medical 100% tax-freepowerfulSuze approvedFICO credit score credit card mortgageclosing feesage appropriate choreinsurance yearly reviewStaffords this year have a fixed 6.8% interest rateprotect dependent grandchild summer job IRA contributionchildren under 18car buying mistakesaccelerate dental workinterest capitalizationHDHP'schildren's bookexercise reguarlysave money8 RulesMinor Children near historic lowsautomate student loan paymentsretirement planAlarm ClockFederal Stafford loanspring summer pay credit debt ASAPpermanent life insurancestudent loan debtincreased auto insurance premiumhealthy retirement blood pressureLTCi ASAPHoliday Shopping40% toward financial goalFiscal ResponsibilityFinancial Gift Cliffcommissionsdeath benefit needs for familybetter loan ratesETF'sSatisfyingwives should be involved in retirementhigher monthly paymentstore credit cardsConventional loan PMIknow before you owehome buying budgetallowanceRevocable Trustcharges on credit cardresponsible with moneydon't use allowance as briberefundAdequate Auto and Home Insurancevalentines daymax employee matchFree Debt EliminatorGay Rightshighest possible benefitlow-cost index mutual fundpreexisting condition not coveredFRAalways use all paid time offVeterinary Schoolhigher insurance deductiblesetup automatic savings withdrawpremiumrising home pricespercentage of women widowed 75-84loan no longer than 36monthsdo not pay allowance for good behaviorbill paying prioritiespay high rate off firstCPI-Wrepay student loanshome loan credit score below 740 Gay Couplesavoid burn outBill and Pennyopen enrollment review high credit score discountfocus on needsunder 18 financial giftFHA loan feesinitial tax break one annual fee

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