When her grandchildren were little, my mother-in-law hosted annual Easter egg hunts. She loved hiding candy-filled eggs in her yard for them to find. There was one egg bigger than all the others that she filled with cash instead of candy. She called it the money egg. Every child wanted to find it, break it open, wave the cash around, and speculate on how they would spend it. If they’d saved the money in those eggs instead, how much would they have now? You can help your children, grandchildren, godchildren, nieces, nephews, or any youngsters you love, begin good money saving habits this Easter.
Littles
- In addition to candy, put a wallet in their Easter basket. A child as young as kindergarten can be taught it’s a safe place to keep the contents of their money egg. This gift implies valuables (money, gift cards, library card, driver’s license, etc.) should be kept organized, somewhere they can find it, and safe. A wallet is something they can keep in their room and periodically check to see how full it is. When a significant amount is accumulated, it’s time to open a bank account.
- We’re still in our bubbles for a little while, so, if you’re buying for children who are at least five years old, how about a new board game? Monopoly has several junior versions that help teach concepts like buying, selling, and paying rent. The dollar designations are smaller than the adult game and the properties you can buy (e.g., an arcade) are more age appropriate.
- You can use Easter baskets for some not so obvious financial lessons like delayed gratification. For example, if your little ones want to eat their Easter candy before breakfast, offer them a choice. They can either have one little solid chocolate egg before breakfast or half of the big bunny after breakfast. In other words, would they rather have a little now or wait for a bigger reward? When they are older and want to spend their work bonus on the latest iPhone now instead of putting it in their 401(k), this lesson should come in handy.
Bigs
If you’re giving an Easter present to a juvenile with a job, whether formal (e.g. bagger at a grocery) or informal (e.g., mowing lawns), how about opening a Roth IRA for them? There are several companies that don’t charge for opening an account. Which is not the same as no minimum investment, btw, so read brokerages’ terms and conditions before choosing one. If the child is a minor, the account will have to have an adult custodian. If that won’t be you, check with the receiver’s parent first. This gift plants a few seeds for learning about investing. As they get older and the money grows, they can evaluate available saving options for a long-term goal. It also accustoms them to habits like contributing to their future employers’ 401(k) plans. The earnings from a Roth IRA can be used to pay for higher education (at an eligible institution) without penalty for early withdrawal. Every little bit a young person is willing to save now will pay off big time when they graduate high school.
While these probably won’t replace chocolate bunnies, Reese’s eggs, or jelly beans, finding some money-wise goodies in their Easter baskets communicates that you care about their happiness beyond today.
Were money eggs included in Easter egg hunts when you were little? Did you save or spend them? Please share your story in the comments.