Follow a specific approach when gifting money.

As Christmas approaches next week, it’s time to plan your gift-giving strategy. When kids are young, a small token gift may suffice, but as they grow older, choosing the right present becomes more challenging. Children often have a long list of desired items, making it difficult for parents to keep track. In such instances, providing them with financial autonomy, even temporarily, can be the most valuable gift.

While some may argue that giving money lacks a personal touch, nothing can be more disheartening than witnessing a child’s disappointment when a gift does not meet their expectations. Children have unique preferences when it comes to presents, so granting them autonomy is often the best approach. Not only does it alleviate the pressure on parents, but it also offers a valuable lesson in financial management.

When gifting money to your children, it’s essential to establish some guidelines. Emphasize that once the money is spent, there will be no further financial assistance until the next significant gift-giving occasion. This encourages them to spend thoughtfully on items they truly desire or save for larger purchases in the future. Additionally, it’s advisable to avoid gift cards as they restrict spending to a specific location, undermining the lesson in financial responsibility.