5 Reasons to Give Cash Gifts to Your Children
We are pleased to welcome Sharita M. Humphrey, CFEI as a Sammy Rabbit Guest Blogger.
It is a delight to have Sharita contribute her thinking on giving, kids and money.
About Sharita
Sharita M. Humphrey is an award-winning finance expert, money mentor and Certified Financial Education Instructor.
Once broke and homeless, Sharita completely transformed her life. She is now a successful entrepreneur and one of the most in-demand money coaches for individuals and business owners of color.
In 2020, Sharita was named the National Financial Educator of the Year.
You can discover more about Sharita and her mission at SharitaMHumphrey.com
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Sharita M. Humphrey – 5 Reasons to Give Cash Gifts to Your Children
Gift-giving is an impactful part of our culture and tradition. It tangibly demonstrates our generosity and love for friends and families.
For parents, buying gifts for our kids can be loaded with mixed emotions.
On the one hand, our excitement grows as we look forward to seeing our kids get excited about the gifts we’ve chosen for them.
On the other hand, there’s the responsibility of choosing those gifts well.
When it comes to giving gifts to your children, it’s a good idea to pay particular attention to your motivation.
For example, you might ask yourself and consider why are you choosing this toy over that set of clothes?
Your reasons should align with the character and person you want your children to grow into.
Of course you want them to enjoy and appreciate their gifts, but even more, you want them to value the acts of giving and receiving.
If you are thinking about what type of gift would have a meaningful impact on your children, think about giving cash.
Below are five benefits your kids will receive when you choose to give them money over toys.
1. It Helps Children Learn To Be Independent
When you give your child a cash gift, also allow them to decide on their own how they will use their money.
This gives them the opportunity to see the value of what they buy as they spend their money.
Empowering your children to make decisions by themselves is a great life investment and an excellent first step in helping them learn to be independent.
2. Children Learn To Share
When kids are able to decide for themselves what to do with what they have, you have the opportunity to teach them the practice of sharing.
Invite your children to use their money to buy a gift for someone else. And, invite your children to give to someone in need or a favorite charity.
This will help them learn to see money as a tool they can share and use to bring joy to and help others.
3. Children Learn About Budgeting
It can be challenging to help children understand the concept of budgeting. But, by giving your kids their own money, you can show them how they can divide what they have to be used for different purposes.
Talk with them about what kinds of things they should plan and budget for, such as giving, treats, larger toys, or even long-term savings.
They will learn to view their income and expenses as something they can manage.
This practice will open their minds to a healthy and responsible view of money. And, it will teach them a valuable skill they can use the rest of their lives - to plan and budget their money.
4. Children Learn To Save
It is truly never too early to teach your children how important it is to save money.
Along with your discussions on giving, sharing and budgeting, you can talk with your kids about setting aside a specific amount for something they want in the future.
Work with your children to set goals for their savings. You may even want to reward them when they reach preset milestones to add a little fun.
Obviously, kids won’t have to save for emergencies like we do as adults. But planning ahead and saving for a larger purchase teaches a habit they will benefit from forever.
5. Children Learn To Be Appreciative
Talk with your children about showing gratitude when they are given gifts.
By giving kids a cash gift, you’re giving them more than just another thing that’s only for them. Your children will gain an appreciation of what they have and what they are able to do with it.
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Good To Remember
It is good to remember to set proper expectations for our children when it comes to financial responsibility.
We need to be able to explain to them why they are receiving the amount and what it is for.
If we also plan along with them how they can use the amount more responsibly, that will make the learning even more valuable.
The Bottom Line
You have an opportunity to create a learning experience for your kids by giving them a cash gift.
Rather than just another shiny new toy, you’ll be able to teach them to value, save, and share their money in a responsible way.
This could be a stepping stone in their journey to becoming the capable and valuable adults they will one day be.
As parents, it’s our duty and privilege to guide our kids in this way.
Contribute and Deposit Your Thoughts
Have you ever given your kids a cash gift? What was your experience? Will you do it again?
Tell us about it in a comment! Post a thought on LinkedIn.
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