Gifts also can turn into money-saving lessons for youths

By Eileen AJ Connelly

Associated Press

While others are blowing their holiday budgets, you can set an example and send a message by giving a gift with a focus on personal finance.

The economic downturn highlights the importance of understanding money matters, and there are items available for every age group that can help teach important concepts.

The important thing is to make sure gifts are presented in an appropriate manner. Kim E. Jones, a financial planner in Broomfield, Colo., said you should make sure the message you’re giving is caring and not judgmental.

Even before children can count, they’re learning about money. Gifts that help them learn how to handle it can help get them started on a financially healthy path.

One of Jones’ favorite items is the Money Savvy Pig, a piggy bank with a twist. The translucent pigs come bright colors and have four slots, each leading to a different section of the pig labeled “Save,” “Spend,” “Donate” or “Invest.” The four sections allow kids to set priorities.

Money Savvy Generation, www.msgen.com, also offers Moolah the money savvy cow and a football bank for sports fans. For $16.99, each comes with stickers to help kids keep track of their goals, as well as tips for each of the money choices.

Parents might also consider a book to read to their young kids. Shelley Solheim, director of Financial Education for Capital One Financial Corp., recommends “Alexander, Who Used to Be Rich Last Sunday,” by Judith Viorst. It tells the story of a boy who receives a dollar from his grandparents, the things he dreams of buying, and how the money starts to slip away.

Classic board games like Pay Day, Life and Monopoly can make learning about finances more fun.

While one share of stock won’t fund a college education, it can be helpful to teach a child about the stock market.

You can buy single
 shares as framed gifts at www.oneshare.com.

The colorful certificates, which will bear the recipient’s name, are available for 163 publicly traded companies.

OneShare CEO Lance Lee said single shares provide a “great teachable moment” by creating an opportunity to discuss what stock is. Buyers will pay a $39 fee, plus the stock price (based on the prior day’s closing price).

To help young people get started on saving, another option is a gift card for SmartyPig. The cards can be used to open a SmartyPig.com account or contribute to existing accounts. The idea is to use an account to save for a specific goal.