• Shop
    • Made to Give Life Planner
    • Bible Reading Plans
    • Your Intentional Family Homeschool Planning Guide
    • Fruit of the Spirit Curriculum for Toddlers
  • Resources
    • Podcast
    • Blog
    • Mission Statement
    • Goal Action Plans
    • 2022 Intentional By Grace Reading Challenge
    • Bible Reading Plans
    • Monthly Checklists
    • Deals and Freebies for Christian Women
  • About
  • 2022 Planner
  • SHOP
  • Search
  • Menu
  • Skip to right header navigation
  • Skip to main content
  • Skip to primary sidebar

Before Header

  • Facebook
  • Instagram
  • Pinterest
  • YouTube

Intentional By Grace

Made to give life.

  • Shop
    • Made to Give Life Planner
    • Bible Reading Plans
    • Your Intentional Family Homeschool Planning Guide
    • Fruit of the Spirit Curriculum for Toddlers
  • Resources
    • Podcast
    • Blog
    • Mission Statement
    • Goal Action Plans
    • 2022 Intentional By Grace Reading Challenge
    • Bible Reading Plans
    • Monthly Checklists
    • Deals and Freebies for Christian Women
  • About
  • 2022 Planner
  • SHOP
  • Search
I never thought about managing my kid's gift money, but I'm loving these four tips to get started.

Managing Your Kids’ Gift Money

I never thought about managing my kid's gift money, but I'm loving these four tips to get started.

This post is written by contributing writer, Stacy

I’m the mean mom. You know the type – I don’t buy toys with batteries, I ONLY give my child 3 gifts at Christmas, I make sure she’s covered up when she’s dressed…and I confiscate her money at birthday parties and Christmas.

A few months after Annie was born, we set up her college fund. From that point on, anytime she received a gift of money, it was set aside to be added to that account. When I would send thank-you notes, I would always say the same thing: Thank you so much for contributing to Annie’s college education! You now own one section of the diploma.

I know some of you are shocked out of your mind right now. You cannot believe that we would be so cruel as to take Annie’s money away before she even got her little hands on it. BUT, we don’t see it as being mean – we see it as being responsible and caring for her future.

When she is grown and comes to us, requesting to go to college or trade school, we want to be able to say “Okay, honey, here is how much you have saved – you need to make your decision based on that.” Too many times we’ve talked to parents who have an awakening moment when their child is a senior in high school – oh no!!! College time is here! AHHHHHHHHHHHHHHHHHHHHHH!!!

At this point, it’s a little too late to set up a college fund. You either need to be able to cash flow the education or you’re going to go into debt for that degree – you or your child…maybe both. Graduating from college with a large amount of debt is a huge burden to bear…especially when you also have the burden of finding a job.

Image by andrewmalone

Four Tips for Managing Your Children’s Gift Money

  1. When they are young, confiscate all their cash. Until she’s about 5, I would guess that any money Annie gets for gifts will be put aside for her college savings. We try to make this fun for her. She has two small piggy banks and we let her put her money in there. She gets GREAT satisfaction when she hears that money clink on the bottom. Once per year, we empty the piggy bank and add the money to her college savings. Remember, you’re preparing for a “rainy day.”
  2. When they get a bit older, confiscate most of the money but leave a bit out for “play.” We’ll likely let Annie keep about $10 from her birthday when she hits the age of 5…that might increase as she gets older. You’ve got to have a little fun in life, or saving becomes a huge burden.
  3. Teach them to save. As they begin earning money on commission, as a parent, you need to teach them what to do with that money. It’s not something that’s natural – you have to be TAUGHT to manage money. Dave Ramsey recommends you set up budget envelopes for your child: SPEND, SAVE, GIVE. Make sure their “save” envelope goes toward college until they reach an age that might direct you to help them save for some other large purchase. These three categories teach them how to learn to budget for life.
  4. Model good money habits for your child. Honey, you cannot expect your child to have good money habits if yours are in the toilet. A child won’t understand the concept of saving if you spend every cent that gets into your hand. If your child SEES you saving, they will understand the idea.

Set up a budget yourself and show them how it works…explain WHY they’re saving.

When they’re young (or even teenagers) your children might not understand why they can’t just spend all their cash – especially if their friends get to buy tons of toys and whatnots with their birthday money. But take it from me…since I graduated from college DEBT FREE because of my parent’s planning…they will appreciate it one day. And they’ll thank you.

How do you plan on helping your child save for college?

Share
Pin8
Tweet
8 Shares

Filed Under: Christmas, Money Matters

About Leigh Ann Dutton

Leigh Ann Dutton is the wife to the man of her prayers, Mark, and mama to four loveable little cherubs. She takes joy in spending her days creating memorable moments with her family, studying God's Word, reading good books, and enjoying God's creation. She does it all by the grace of God.

Previous Post: « Passionately Pursuing God Through His Word {Scripture Memory Challenge Week 13}
Next Post: Nikki’s Oatmeal Routine »

Reader Interactions

Comments

  1. Nikki

    September 25, 2012 at 5:44 am

    Stacy these are great tips! I would say #4 will be most effective in the long run!

    • Stacy @Stacy Makes Cents

      September 25, 2012 at 5:50 am

      We live by example. 🙂

  2. Kate

    September 25, 2012 at 8:26 pm

    We started our little girls’ savings from before they arrived. We saved all the money we were given at baby showers and once we could open their education accounts put everything in there. All their Christmas and Birthday money goes in there too. In fact, that’s about all we ask for at Christmas- money for college, money for “experiences” (like Kindermusik or ballet classes), and any needs. I made it through college and graduate school debt free, and I want the same for them. 🙂 Great post!

    • Stacy @Stacy Makes Cents

      September 26, 2012 at 5:00 am

      Kate, you are one smart mama! 🙂 You go girl!!!

  3. Jenni Mullinix

    September 28, 2012 at 4:07 pm

    Great tips, Stacy! We haven’t saved any of our daughter’s money yet, but we do use it for NEEDS. When she gets old enough, we will probably give her a portion to spend. 🙂

    • Stacy @Stacy Makes Cents

      September 28, 2012 at 6:44 pm

      Better needs than toys! 🙂 Good job, Mama!

  4. travel

    November 8, 2012 at 10:20 am

    think that is the best article thet i have read

    • Stacy @Stacy Makes Cents

      November 8, 2012 at 10:41 am

      Well thank you!

  5. Karen

    March 22, 2013 at 11:20 am

    I’m glad to read that I’m not the only one who puts their gift money into their college funds, and doesn’t give them a ton of stuff at Christmas time. I have friends who aren’t wealthy but buy most of what’s on their kid’s Christmas list or at least the big ticket items (bike, etc.) I can’t afford stuff like that for my kids right now, but they’re young and don’t seem to care.

  6. Jelli

    July 17, 2013 at 6:39 pm

    This post is awesome & so full of wise $ advice. Loved the intro paragraph and I think Stacy and I would totally get along because I do all the same things she mentions there. Will definitely be sharing this post & tweeting about it. Thank you so much for lending good solid advice to parents who might otherwise be completely stumped as to what to do with kids’ cash.

    • Leigh Ann

      July 18, 2013 at 7:03 am

      Stacy is great and I love all her money/stewardship tips on her blog!

Trackbacks

  1. Patchwork Waltz: Give a Little | Jellibean Journals says:
    August 16, 2013 at 6:08 pm

    […] Source […]

  2. Implementing a Morning Routine for My Children - Intentional By Grace says:
    April 28, 2015 at 8:51 am

    […] I know that children earning money for chores is a controversial topic. Personally, I was never paid for chores growing up, and I wasn’t given an allowance. I never had money of my own to manage unless someone gave it to me for my birthday or Christmas. […]

  3. Christmas Inspiration for Your Heart and Home - Intentional By Grace says:
    December 5, 2018 at 7:54 am

    […] 4 Tips for Managing Your Kids’ Gift Money […]

Primary Sidebar

Get Inspired

Free Resources

Free Printable Topical Bible Reading Plans

Search the Site

Browse the Archives

Get Social

  • Facebook
  • Instagram
  • Pinterest
  • YouTube

IBG

About

Contact

Subscribe

Advertise   |   Disclosure Policy   |   Privacy Policy   |