Ask Susan: Are there any presents that will help my kids financially?

Thursday, 30 November 2017

Looking for a gift for your kids? What about a goat for someone else?

With Christmas approaching, can you suggest any presents that could help my kids learn some financial skills? I'd like to give them something that will teach valuable life lessons.

I put this one to a few of my contacts and the responses were wide and varied.

Tim Barnett, chief executive of the National Building Financial Capability Charitable Trust, suggested a grow your own edible garden seed kit, a home hairdressing kit, a piggy bank or a bicycle or skateboard to save on transport costs.

Financial adviser Liz Koh recommends, depending on the age of the kids, books on money management, an appointment with a financial adviser, a preloaded Sharesies account or an investment in a managed fund or ETF.

David Boyle, group manager of education at the Commission for Financial Capability suggested a common boardgame.

'I learnt heaps playing monopoly. Spent many Christmas holidays playing it with friends and clearly being banker helped me understand the power it provided,' he said.

'Otherwise Game of Life, with real-life events and how they impact your outcomes.'

But he said it need not be a boardgame. There are lots of computer games that teach valuable lessons.

'There are a whole lot of games and apps that integrate the need to work and earn before trying to takeover the world. Many requiring patience and rewarding based on that. Or you just pay more to get their quicker which probably isn't so much a good thing.'

Hannah McQueen, of EnableMe suggested a copy of her own book, Pocket Money to Property: creating financially independent kids.

Some charities also offer the option of paying for something in someone else's name - through Oxfam, you can buy a family a goat, for example. This could be a good way of teaching kids the value of philanthropy.

Whatever you do, it will need to be something that is age- and stage-appropriate for the recipient of your gifts. Anything that is too advanced, or too simple, won't engage them enough to make an impact.

If you have a financial or consumer issues question you would like answered, email susan.edmunds@fairfaxmedia.co.nz