Every year I devote a column to meaningful gifts for children of all ages – gifts that might grow in value or spark an interest in financial matters, or just be a relief from the online games that take up so much of their time.

529 College Savings Plans. In a recent column, which can be found on TerrySavage.com, I detailed the importance of opening a 529 college savings account for children or grandchildren, and making regular contributions at holidays or birthdays. While toys are broken and clothing outgrown, these contributions will grow tax-free for college in any state.

Please see that column for details. And note the financial aid benefits of having a 529 account – as opposed to opening a “custodial” account for a minor child. To save money, go directly to the plan online. And to see plan ratings go to www.SavingforCollege.com.

Stock Market gifts. While money in a child’s name weighs far more heavily against the family in the financial aid formulas down the road, many parents and grandparents do want to spark an interest in investing while their children are young. The easiest place to start is at Fidelity, where there are no fees or minimums. Designed for teens age 13 -17, it features an app that has a broad-based approach to money management, including parental allowance management, a debit card, and investing lessons – as well as a way to purchase small amounts of stock.

To get started, a parent or guardian must open the Fidelity Youth Account on behalf of their teen. Parents must have an existing account with Fidelity, or both accounts can be opened at the same time. Teens create a login and agree to terms and conditions to activate their new account. You can start the process instantly at Fidelity.com, by putting the words “youth account” in the search bar. Although this is technically not a custodial account, the money in it is considered the child’s asset and thus does have a significant impact on college financial aid.

MoneySavvy Piggy Bank. This has long been my favorite “money gift” for very young children. You can find this translucent four-chambered piggy bank on Amazon.com here under “money savvy piggy bank” for $27.99. It comes in different colors if you want to gift multiple children in the same family. The four chambers, each with its own slot to deposit coins, are labeled: SAVE, SPEND, DONATE & INVEST. This is the first step toward teaching good money habits and empowering money decisions.

Greenlight.com Teen Debit Card. When you get to the stage of actually launching your teens on real-life money management, you’ll want to start at this helpful website to learn about the Greenlight app. It allows teens to manage money and spending, with a debit card that can be used for transactions. But at the same time, the parents can monitor spending real-time, as well as adding funds to the account. Instant notifications alert parents and kids to the consequences of spending decisions, and parents can restrict spending in certain categories!
And the teen can customize that debit card with his or her own picture, or a picture of the family pet! Greenlight definitely knows how to make money management interesting to the younger generation. Plans start at just $5.99/month for the whole family, and that includes up to five kids.

Teaching Your Teens About Money. For parents who want to be involved in teaching their children about money, there is a new book by Michael Sincere called Help Your Child Build Wealth. It’s available on Amazon here for $16.98. Full disclosure – Michael showed me the book in manuscript form and I thought it was so useful I wrote a “blurb” for the cover, recommending it. It’s a primer on everything from credit and debt to money management – something the family can do together. (And I won’t be surprised if parents learn a thing or two, as well!)

Creating a Money Hobby. Finally, it might be old fashioned, but I’ve seen pre-teens become fascinated with money itself. They grew up knowing it doesn’t grow on trees; it spits out of ATMs! In fact, for a younger generation, money is completely digital these days.

But presented with a gold or silver coin from the date of their birth, or some other collector’s item, an interest can be sparked into a hobby that will last a lifetime. Contact your local numismatist to purchase a “proof” coin encased in plastic. Find a reputable dealer at www.Money.org, the website of the American Numismatic Association. [In Chicago, contact Harlan J. Berk, Ltd. on Clark Street in the loop.] This rare coin might one day be more valuable than crypto – or it could just be considered a curious relic! And that’s The Savage Truth.